Passing of Accounts Hearing Reveals Executor’s Theft

 

Inheritance rip-offPassing of Accounts Occur When the Executor Applies To Court to Approve the Estate Accounts- Guardian ordered to repay missing funds.

It presents a very familiar fact pattern to many estate litigants.

The Court followed  Zimmerman v. McMichael Estate (2010), 103 O.R. (3d) 25 (Ont. S.C.J.), in which Strathy J. awarded no compensation for a guardian of property, where significant amounts of money had disappeared from an estate without adequate explanation.

The applicant was the guardian of property for his mother . In Ontario, this is the same as a court appointed committee of a patient in British Columbia under the Patients Property Act of RSBC.

The  guardian of her property passed accounts in 2001 and not again until 2010 shortly after mother’s death.

The total revenue from 2001 to 2010 was $195,776.41 and total disbursements totaled $207,036.44 .

His mother’s investment account had value of $152,055.71 in 2001 and $46,562.91 in 2010 .

The guardian made cash withdrawals from investment account of $122,534.40 between 2001 and 2010, without explanation.

The guardian brought an application to passing of accounts and for his compensation for being guardian.

The guardian’s brother objected  and the  application was  dismissed.

Instead, the guardian was ordered to pay $132,628.33 and repay $12,699 to mother’s estate .

The guardian was not entitled to compensation as the guardian’s conduct was shocking, as he withdrew thousands of dollars from his mother’s estate for his own benefit.

The estate was not complicated.

The guardian adversely affected the estate leaving the  investment account  reduced to fraction of its original size with no explanation.

 

 

The Court instead ordered the guardian to personally pay the brother’s  costs of the court application,

Trevor Todd

Trevor Todd is one of the province’s most esteemed estate litigation lawyers. He has spent more than 40 years helping the disinherited contest wills and transfers – and win. From his Kerrisdale office, which looks more like an eclectic art gallery than a lawyer’s office, Trevor empowers claimants and restores dignity to families across BC. He is a mentor to young entrepreneurs and an art buff who supports starving artists the world over. He has an eye for talent and a heart for giving back.

More Posts - Website - Google Plus