Re: The Estate of George Newton, Deceased

Re: The Estate of George Newton, Deceased

The Master recommended that the $25,000 annual payments to Madonna for the years in issue were not authorized because they were paid from capital rather than income available after providing for Stephen, and that those payments be repaid with interest; the executor's remuneration was approved at $94,260.45 for the period ending December 31, 2005; and special costs were awarded to both Stephen and the executor payable by the estate.

Citation
2006 BCSC 1345
Parties
Executor: Thomas Nelson Wood; Applicant/beneficiary: Stephen George Newton; Estate: The Estate of George Newton, Deceased; Residuary Beneficiary: Madonna Wood
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
1 September 2006
Procedural Posture
Probate Reference Re Estate Accounts / Recommendations of the Registrar Following Reference Hearing
Outcome
Recommendations that executor repay unauthorized payments to Madonna with interest, partial approval of executor remuneration, and award of special costs to both parties payable by the estate.
Legal Topics
Executor Remuneration, Income Vs Capital Allocation, Payments to Beneficiaries, Accounts and Taxation, Costs
Source Language
English
Trusts and Estates Probate Fiduciary Duty Trust Accounting Executor Remuneration Income Vs Capital Allocation Payments to Beneficiaries Accounts and Taxation +1 more

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Parties

Thomas Nelson Wood

Executor

Stephen George Newton

Applicant/beneficiary

The Estate of George Newton, Deceased

Estate

Madonna Wood

Residuary Beneficiary

Procedural Posture

Probate Reference Re Estate Accounts / Recommendations of the Registrar Following Reference Hearing

Legal Issues

  1. 1 Whether annual $25,000 payments to Madonna were authorized by the will and properly funded from income rather than capital
  2. 2 Whether the executor's fees were properly charged and reasonable

Ratio Decidendi

The Master recommended that the $25,000 annual payments to Madonna for the years in issue were not authorized because they were paid from capital rather than income available after providing for Stephen, and that those payments be repaid with interest; the executor's remuneration was approved at $94,260.45 for the period ending December 31, 2005; and special costs were awarded to both Stephen and the executor payable by the estate.

Court Disposition

Recommendations that executor repay unauthorized payments to Madonna with interest, partial approval of executor remuneration, and award of special costs to both parties payable by the estate.

Orders

  • Executor to repay to the estate the $25,000 payments to Madonna for the years in issue, together with interest, forthwith
  • Approve executor remuneration at $94,260.45 for the period ending December 31, 2005