The friction between the siblings would likely continue to disrupt estate administration: court
In a recent ruling, the Ontario Superior Court passed over a sibling as estate trustee due to conflicts and mismanagement concerns
The case of Holmes v. Holmes, 2024 ONSC 4925, addressed a long-standing family dispute surrounding Joseph Holmes's estate. The court ordered Gary Holmes to be passed over as an estate trustee. This ruling followed an ongoing legal battle between Holmes' surviving children involving multiple applications related to the management of their father’s property and estate.
Joseph Holmes passed away in March 2023, survived by four of his five children, after years of litigation concerning his property. Before his death, he had appointed his son, Gary, as his attorney for the property in 2019 following a diagnosis of moderate dementia. His daughter, Jacqueline, who was also involved in his care, had been appointed as his attorney for personal care. The family had already been engaged in litigation concerning Joseph’s property before his death. The disputes intensified after his passing, as the children could not agree on the administration of the estate.
Following Joseph’s death, Jacqueline applied to have Gary removed as estate trustee, citing his alleged mismanagement of estate assets. Specifically, she raised issues regarding the funds from the sale of the family home, alleging that her brother had made cash withdrawals from the estate that lacked proper documentation. She also contested the validity of a beneficiary designation he made on one of the father’s investment accounts.
In 2022, Gary filed an application to pass his accounts for managing Joseph’s property between 2019 and 2021. Jacqueline contested Gary’s estate handling, particularly accusing him of unsupported cash withdrawals and an unauthorized beneficiary designation for an investment account.
The Superior Court granted Jacqueline's request to pass over Gary as estate trustee. The court emphasized the conflict between Gary and Jacqueline, noting their inability to collaborate productively, which would hinder the proper administration of the estate. The decision was also based on Gary's handling of his role as attorney for property and the ongoing disputes over his management of the estate.
Ultimately, the court’s ruling passes over Gary Holmes as an estate trustee and grants Jacqueline sole responsibility for administering Joseph Holmes’ estate. The court highlighted the importance of effective estate management and cooperation among trustees, as well as the court's power to intervene when conflicts prevent proper administration.
