Hautakoski Estate (Re)

Hautakoski Estate (Re)

Executor acted beyond the impartial role expected in Wills Variation proceedings and therefore her claimed remuneration must be reduced; having regard to estate size, care required and lack of evidence of extraordinary management, capital fee reduced to 2% of gross value, income fee allowed as claimed, and care and management fee set at 0.3% calculated annually.

Citation
2009 BCSC 868
Parties
Beneficiary/objector: Harry Hautakoski; Executor/respondent: Aaltje van Grootheest; Beneficiary: Aarne Oskari Hautakoski; Beneficiary: Katherine Hautakoski; Testator/deceased: Veikko Tapani Hautakoski
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
30 June 2009
Procedural Posture
Probate and Estate Administration; Passing of Accounts / Application to Approve Executor's Accounts and Fix Executor Remuneration
Outcome
Accounts approved except executor's remuneration reduced; executor entitled to specified reduced fees; beneficiaries awarded special costs payable from the estate; executor not entitled to costs.
Legal Topics
Executor Remuneration, Accounts Passing, Wills Variation Act Proceedings, Care and Management Fee Calculation
Source Language
English
Wills and Estates Probate Civil Procedure Executor Remuneration Accounts Passing Wills Variation Act Proceedings Care and Management Fee Calculation

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Parties

Harry Hautakoski

Beneficiary/objector

Aaltje van Grootheest

Executor/respondent

Aarne Oskari Hautakoski

Beneficiary

Katherine Hautakoski

Beneficiary

Veikko Tapani Hautakoski

Testator/deceased

Procedural Posture

Probate and Estate Administration; Passing of Accounts / Application to Approve Executor's Accounts and Fix Executor Remuneration

Legal Issues

  1. 1 Whether executor may charge the estate for work defending a Wills Variation Act claim when the executor should remain neutral
  2. 2 Appropriate quantum and basis for executor's remuneration (capital fee, income fee, care and management fee)
  3. 3 Proper method for calculating care and management fee (annual reckoning vs global)

Ratio Decidendi

Executor acted beyond the impartial role expected in Wills Variation proceedings and therefore her claimed remuneration must be reduced; having regard to estate size, care required and lack of evidence of extraordinary management, capital fee reduced to 2% of gross value, income fee allowed as claimed, and care and management fee set at 0.3% calculated annually.

Court Disposition

Accounts approved except executor's remuneration reduced; executor entitled to specified reduced fees; beneficiaries awarded special costs payable from the estate; executor not entitled to costs.

Orders

  • Approve executor's accounts for period March 8, 2005 to December 8, 2008 except for remuneration claim
  • Allow capital fee at 2% of gross aggregate value ($1,118,511.90) totalling $22,370.38