Ontario Superior Court emphasizes estate trustee must account for trust property

A widow repeatedly failed to submit an estate account to a minor

Ontario Superior Court emphasizes estate trustee must account for trust property

The Ontario Superior Court of Justice has ordered a widow to submit detailed accounts of her late husband's estate following her failure to provide this information to her 17-year-old stepson, an estate beneficiary.

In Huang v. Nie, 2024 ONSC 2398, the deceased's son requested the court to compel the widow, who serves as the estate trustee, to pass the estate's accounts.

Weirong Huang died in 2019, leaving behind an estate valued at over $600,000. This included two bank accounts and real estate. In May 2020, the respondent, Huang's widow, applied for a Certificate of Appointment as an estate trustee without a will. In the application, she proposed holding the estate's assets as a property guardian, intending to retain the matrimonial home. The Office of the Children’s Lawyer (OCL) questioned this proposal, citing concerns over valuations and how the applicant's interests would be protected.

Despite repeated requests from the OCL in 2022 and 2023, the respondent failed to provide the required estate details, including a copy of her application for appointment as estate trustee, a list of the deceased's assets and debts, and a summary of all transactions since the deceased's passing. The OCL issued a final warning in February, threatening court proceedings if she continued withholding information.

After serving the application record, the respondent did not file a notice of appearance or any other documents.

The Superior Court emphasized that an estate trustee is responsible for maintaining accurate records and must be ready to account for the trust's property. While trustees aren't required to file accounts unless requested by an interested party or creditor, s. 50(1) of the Estates Act permits the court to compel an executor to submit detailed accounts.

The judge noted that more than four and a half years have passed since Huang's death, and the widow had ignored correspondence from the OCL and neglected her son's interests. The court ordered her to file the estate accounts in compliance with the Rules of Civil Procedure within 45 days. Additionally, she must provide her email address to the OCL and the court. The judge imposed $5,000 in legal costs on her personally, payable to the OCL. The judge acknowledged that further measures, such as contempt proceedings, could be pursued if she failed to comply.

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