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ARTICLE · 11 OCTOBER 2023

Having Breached Their Obligations, Do Estate Trustees Still Get Paid?

An Estate Trustee owes fiduciary duties to the Estate. They are typically entitled to compensation for their efforts. However, what if the Estate Trustee breaches their fiduciary duties to the estate...

CanadaLitigation, Mediation & Arbitration

An Estate Trustee owes fiduciary duties to the Estate. They are typically entitled to compensation for their efforts. However, what if the Estate Trustee breaches their fiduciary duties to the estate, for example, by misusing estate funds or not being able to account for the expenses incurred while dealing with the estate assets? Is the Estate Trustee still entitled to compensation? Generally – yes.

Section 61 of the Trustee Act authorizes the Court to award fair and reasonable compensation for care, pains, and time spent on the estate. Inherent in that authority is the Court's ability to reduce the amount of compensation or order that no compensation be paid. However, before a Court will deny all compensation, on the basis that any compensation would not be fair and reasonable, there will need to be egregious misconduct by a trustee. Additionally, there will likely need to be actual harm to the Estate as a result of the egregious misconduct before compensation

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