Why is this estate litigation blog dealing with tax? I was a speaker at the 17th Annual Estates and Trusts Summit and one of the others presenters was Barry Corbin. He gave a passionate presentation about changes under the Estate Administration Tax Act. He considered these changes so flawed and counterproductive that he beseeched us […]
As regular readers of this column undoubtedly know there is a seminar set for June 5, 2012. For this column, I want to focus on one aspect of the seminar, organized by B’nai Brith Canada’s Estates and Trusts, Lawyers Division, that deals with the moral obligation of parents in their testamentary planning to include children […]
B'nai Brith, disinherited, Perilli v. Foley Estate, Tataryn v. Tataryn Estate
As regular readers of this blog undoubtedly know there is an upcoming seminar on June 5, 2012. For this column, I want to focus on one aspect of the seminar that deals with the moral obligation of parents in their testamentary planning to include children as beneficiaries. At common law the proposition that a testator […]
Perilli v. Foley Estate, Tataryn v. Tataryn Estate
In Canada, the law balances the idea of testamentary independence against public policy concerns. Two British Columbia courts have ruled that in today’s society, homosexuality is not a factor that would justify a judicious parent disinheriting or limiting benefits to a child. To date, this issue has not been addressed in Ontario’s courts.
The Zimmerman v. McMichael Estate 2010 CarswellOnt 3481, 2010 ONSC 2947, 57 E.T.R. (3d) 101, 103 O.R. (3d) 25 is instructive for those reviewing the Ontario law regarding the duty of an attorney for property to account, the extent of that fiduciary duty and the consequences for failing to account.
In British Columbia disinherited adult children have a strong claim against a parent’s estate based on their moral entitlement to an inheritence. Tataryn was the seminal case in British Columbia which was ultimately decided by the Supreme Court of Canada. The importance of adult children dependent’s moral claim in Tataryn was adopted by the Ontario Court of Appeal. But there is no clear court decision in Ontario suggesting that the moral claims of non dependent children are legally enforcable in Ontario.
Executors often want to buy assets belonging to an estate. Beneficiaries often suspect the executors of wrong doing. So I often am asked whether it’s legal for an executor to buy an asset from the estate. The short answer is maybe, possibly, but not usually. it would be prudent to for all the beneficiaries to obtain independent legal advice. Furthermore, the purchase price should be somewhat more then fair market value. With all these arrows in his/her quiver the trustee might be well advised to seek preapproval of the sale from the court by bringing an application for the opinion, advice and direction of the court under Rule 14.05(3)(d), and under section 60 of the Trustee Act, R.S.O. 1990, c. T.23.