- Court Rules Objection to Trustee Accounts Not Statute-Barred
- December 21, 2018 | Author: Marlin J. Horst
- Law Firm: Shibley Righton LLP - Toronto Office
Executors should make sure beneficiaries are fully informed before taking compensation from the estate according to a recent decision, Toronto corporate lawyer Marlin Horst tells AdvocateDaily.com.
The case involved a disputed passing of accounts by a lawyer acting as an estate trustee on a $3-million estate.
The lawyer, who spent 10 years without formally passing accounts, argued beneficiaries’ objections to actions more than two years old should be struck out under the Limitations Act.
However, a unanimous panel of appeal court judges, sitting as the Divisional Court, upheld a lower court judge’s ruling in favour of the beneficiaries.
“By filing a notice of objection to accounts in response to an estate trustee’s application to pass accounts, a beneficiary is not commencing a proceeding in respect of a claim within the meaning of s. 4 of the Limitations Act,” Appeal Court Justice David Brown wrote for his colleagues in dismissing the appeal.
This is an excerpt from an article that appeared on AdvocateDaily.com.