Nothing stirs up old sibling rivalries like the death of a parent.
In my line of work, it’s not uncommon to see brothers and sisters in their 50s and 60s revert to their childhood selves, as arguments over a mother or father’s money, prized possessions and funeral service are supercharged by the emotional turmoil of the moment.
For many families, any unpleasantness is confined to a relatively short time around the death, but that period can easily be extended when siblings are forced to work together to administer their parent’s estates.
In one recent case that should serve as a cautionary tale for those considering appointing their children as joint executors, the finish line may finally be in sight for the administration of an Ottawa man’s estate, almost seven years after his death, thanks to a Court of Appeal ruling confirming a lower court’s decision to remove his daughter from her role.
According to the ruling, the deceased named his son and daughter as joint estate trustees, along with his longtime lawyer. His will directed that his daughter should receive the rental property that made up the bulk of his $278,000 estate, while the son would receive the funds in a joint bank account.
The siblings’ relationship was already fractious before their father’s death, but descended even further when they received the bill for the estate’s taxes and legal expenses. The father’s lawyer suggested they split the debt in proportion to their share of the estate – meaning the daughter would pay about 90% of the costs. However, she objected to this arrangement and the estate administration ground to a halt, prompting each sibling to move for the removal of the other.
At the Appeal Court, the unanimous three-judge panel upheld the motion judge’s decision to remove the daughter from her role as estate trustee, finding no errors in her conclusion that the daughter had preferred her own interests over those of the estate and that she had obstructed its proper administration.
The costs ordered against the sister for the Appeal Court hearing alone were $25,000, not far short of the debt amount that kickstarted the litigation.
Considering the heavy weight of responsibility that comes with the job of executor, I understand why testators look reflexively to their children to perform the role. It may even work well when the siblings get along well, but any hint of past conflict will be magnified in estate administration, raising the threat of a nasty – not to mention expensive – court fight.
When the choice of a single family member over another to administer your estate is likely to cause problems, then you might consider looking further afield – to a trusted friend or even a corporate trustee.
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