Court compels executor to distribute, when the executor was taking too long

There is an interesting new case from BC that caught my eye. BC lawyer Stan Rule wrote about it in his blog,  Rule of Law. The case involved an executor who was taking an unreasonably long time to distribute the estate (the death occurred in 2000, and this lawsuit happened in 2013), when there were more than enough assets in the estate to cover debts and expenses.

One of the clauses in the will that was raised by the executor in his defence is the one that allows an executor to retain estate assets for as long as he deems reasonable. This is a standard clause, one that I use consistently, as do many other lawyers. The executor argued that this clause means he can take as long as he likes. The court disagreed and said that this clause does not override the executor's duty to settle the estate.

The key word that was repeated many times is "REASONABLE". So, executors, ask yourself whether your delay is reasonable (in the eyes of someone other than yourself).

Another interesting aspect of this case is that there was no precedent for a court ordering an executor to distribute some of the estate. In fact, the executor argued that the court didn't have the power to do so. Again, the court disagreed. The executor was ordered to make an interim distribution of part of the estate.

This may be a new weapon in the battle against out-of-control executors, keeping in mind that in this case the delay was exceptionally long.

Click here to read Mr. Rule's excellent analysis of the case.