Re: The Estate of Marian Catherine Stead

Re: The Estate of Marian Catherine Stead

Master Donaldson found the executrix failed to properly administer and invest estate assets, improperly caused legal fees to be paid from the estate (except those properly incurred to obtain probate), and pre-took advances; he fixed executrix remuneration at a nominal 1%, allowed only $2,495.72 of legal fees to be charged to the estate (probate-related), disallowed other legal fees, ordered repayment of inappropriate charges (including a $500 Air Canada charge and the $21,245 identified in the wills variation judgment), required the executrix to account for interest on misapplied funds and pre-taken fees at court rates, limited residual holdback distribution ($10,000 less tax return cost...

Citation
2009 BCSC 821
Parties
Estate: Estate of Marian Catherine Stead; Executrix: B. Battie (Battie); Beneficiary/objector: H.K. Inch
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
18 June 2009
Procedural Posture
Probate and Passing of Accounts / Assessment Hearing (passing of Accounts)
Outcome
Accounts assessed; executrix remuneration substantially reduced and many estate charges disallowed; repayment and interest ordered; limited legal fees allowed; costs awarded to objecting beneficiary.
Legal Topics
Executor Remuneration, Investment of Estate Funds, Wills Variation, Legal Costs, Interest on Misapplied Funds, Passing of Accounts, Sanctions for Misconduct
Source Language
English
Estates and Trusts Probate Trusteeship Civil Procedure Costs Executor Remuneration Investment of Estate Funds Wills Variation +4 more

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Parties

Estate of Marian Catherine Stead

Estate

B. Battie (Battie)

Executrix

H.K. Inch

Beneficiary/objector

Procedural Posture

Probate and Passing of Accounts / Assessment Hearing (passing of Accounts)

Legal Issues

  1. 1 whether legal fees paid from estate for wills variation proceedings were properly chargeable to the estate
  2. 2 proper quantum of executrix remuneration given alleged mismanagement and pre-taken advances
  3. 3 whether executrix breached duty to appropriately invest estate funds and consequences

Ratio Decidendi

Master Donaldson found the executrix failed to properly administer and invest estate assets, improperly caused legal fees to be paid from the estate (except those properly incurred to obtain probate), and pre-took advances; he fixed executrix remuneration at a nominal 1%, allowed only $2,495.72 of legal fees to be charged to the estate (probate-related), disallowed other legal fees, ordered repayment of inappropriate charges (including a $500 Air Canada charge and the $21,245 identified in the wills variation judgment), required the executrix to account for interest on misapplied funds and pre-taken fees at court rates, limited residual holdback distribution ($10,000 less tax return cost...

Court Disposition

Accounts assessed; executrix remuneration substantially reduced and many estate charges disallowed; repayment and interest ordered; limited legal fees allowed; costs awarded to objecting beneficiary.

Orders

  • Executrix remuneration fixed at a nominal 1% due to mismanagement
  • Only legal fees properly payable for obtaining probate of $2,495.72 are chargeable to the estate; all other legal fees paid from the estate are disallowed unless taxed and allowed