Legal Question in Wills and Trusts in Canada

Trustee's and children

Grandpa died and left all his land to his three grandchildren. He wanted everything divided three-ways, so each child would get 1/3 of the property. The property included 10 acres of prime farm land, and a small farm house. The oldest grandchild decided to buy each share from his two siblings. The youngest was 10 years old and very unaware of the decisions being made. The inheritance was left in trust to the father of the grandchildren. The father agreed to the decision to sell the remaining two thirds of the property to the eldest son.

Now the youngest child is older and very unhappy with the trustee's decision. Is she entitled to any legal rights on this land that was sold without her decision? Or because it was intrusted to her father, is she stuck with the settlement that was made on her behalf.

Thanks.


Asked on 3/10/06, 7:29 pm

1 Answer from Attorneys
Robert Maguire Maguire & Company

Re: Trustee's and children

If the property was left in trust to the father for the benefit of the three grandchildren in equal shares then the father owed a duty to each of his children to act in their respective best interests. Whether the father breached that duty, one would need to know more about the circumstances in which the father decided to allow the oldest child to buy out the other two. It is unlikely the unhappy child would have an action against the child who took the property but she might have an action against her father for breach of fiduciary duty. However, a proper answer to this question requires a much more detailed look at grandpa's Will and the facts surrounding the dealings with the farm property.

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Answered on 3/10/06, 7:47 pm


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