Reasons a BC Court May Remove a Trustee or Executor

One of the common issues that can arise in BC Estate Litigation is when there is a conflict between co-executors or trustees to an estate. As if often the case in estate planning, a parent may appoint both of their children to act in concert as executors and trustees to their estate to ensure that there doesn’t appear to be any favoritism. While this may seem like an ideal solution to the planning parent, unfortunately, there can be disputes between the Executors which can deadlock the administration of the Estate. Section 30 of the Trustee Act provides a remedy to deal with this specific situation:

30 A trustee or receiver appointed by any court may be removed and a trustee, trustees or receiver substituted in place of him or her, at any time on application to the court by any trust beneficiary who is not under legal disability, with the consent and approval of a majority in interest and number of the trust beneficiaries who are also not under legal disability.

Some of the many reasons that a Court may remove a Trustee or Executor include:

1. If the Trustee needlessly expends funds;
2. If the Trustee is in a conflict of interest;
3. If the Trustee sells assets of the trust below market value;
4. If a trustee fails to act and move forward with the administration of the Estate.

Related BC Wills, Estate Planning, & Litigation Posts

• Collapsing a Trust in BC: without reference to the settlor or the trustees
• Resolving Resulting Trusts: Estate Litigation and Wills Variation in BC
• Summary Trials in BC Wills Variation Cases
• Why File A Certificate of Pending Litigation
• B.C. Estate Litigation: Hearing “Hearsay” Evidence

If you have an estate litigation issue or are dealing with a problematic Trustee, contact the Kushner Law Group today to schedule a consultation.

Call our Vancouver law firm at 604-629-0432 or contact us online to learn more about how we can help you.