What Happens to a Trust When the Trustee Dies in Ontario?

When the only trustee dies, the trust has a way to continue, and someone can step in. Until new trustees are appointed, the personal representatives of a sole trustee may exercise the trustee's powers. A sole or last surviving trustee may also appoint a successor trustee by will.

A new trustee may be appointed in writing where a trustee dies, stays out of Ontario for more than 12 months, refuses or is unfit to act, or is incapable of acting. The person nominated in the trust instrument appoints. If there is none, the surviving or continuing trustees, or the personal representatives of the last surviving trustee, appoint.

Court is the other route. The Superior Court of Justice may appoint a new trustee or trustees, either replacing or adding to existing trustees, or even where no trustee exists. For estate trustees, the court may also remove them on any ground on which it could remove any other trustee, and appoint someone else. Which route fits depends on the trust document and who is available, so a lawyer can confirm.