As a continuation of our post on Thursday last week, we do an overview on additional work of the Estate Trustee. Starting with what legal duties the Estate Trustee owes.
An Estate Trustee is considered a fiduciary, meaning they have a legal obligation to act in the best interests of the estate and its beneficiaries.
This includes acting:
- Honestly
- In good faith
- With reasonable care
- Without favouring one beneficiary over another
- In accordance with the law
An Estate Trustee should avoid conflicts of interest and make decisions based on what is best for the estate and not personal preferences.
Can an Estate Trustee Be Personally Liable?
Short answer, Yes.
Many people are surprised to learn that Estate Trustees can be held personally responsible if they fail to carry out their duties properly.
For example, an Estate Trustee may face personal liability if they:
- Distribute assets before paying debts.
- Mismanage estate property.
- Fail to keep proper records.
- Ignore tax obligations.
- Act negligently or dishonestly.
While most Estate Trustees act in good faith, mistakes can still have legal consequences.
Seeking professional guidance can help reduce these risks.
Can an Estate Trustee Be Paid?
In many cases, yes.
Ontario law generally allows Estate Trustees to receive reasonable compensation for the work involved in administering an estate, unless the Will provides otherwise.
The amount depends on factors such as the complexity of the estate, the time involved, and the responsibilities undertaken.
Because compensation can sometimes become a source of disagreement among beneficiaries, it’s important to understand the applicable legal principles before paying yourself from the estate.
Do Estate Trustees Have to Handle Everything Alone?
Not at all.
Many Estate Trustees have never administered an estate before. Estate administration often involves legal, financial, and tax issues that require professional advice.
Working with an estate lawyer can help ensure that important deadlines are met, probate applications are prepared correctly, and the estate is administered in accordance with Ontario law.
Seeking legal advice is often one of the best ways for an Estate Trustee to fulfill their responsibilities while minimizing the risk of costly mistakes.
We’re Here to Help
Acting as an Estate Trustee can feel overwhelming, especially if you’re managing an estate while grieving the loss of a loved one. Understanding your legal responsibilities and knowing when to seek professional guidance can make the process significantly easier.
At our Ottawa law firm, we regularly assist Estate Trustees throughout Ottawa and Eastern Ontario with probate applications, estate administration, and beneficiary matters. Whether you’re just beginning the process or have questions along the way, we’re here to help.
If you’ve been named as an Estate Trustee and would like guidance on your responsibilities, contact our office to schedule a consultation.
The content on this post is for information purposes only and is not legal advice, which cannot be given without knowing the facts of a specific situation. You should never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. The use of the website does not establish a solicitor and client relationship.