Deziel v. Deziel – Trustee Removal Not Warranted & Appraisals in Estate Litigation and Administration
OIndividuals often inquire about selling estate property to a beneficiary or the estate trustee in a private sale. Such transactions require careful consideration, as they can lead to estate litigation and claims of fiduciary breaches and conflicts of interest.
Deziel v. Deziel illustrates how an estate trustee’s good intentions can lead to breaches of trust due to inexperience. This case highlights the importance of proper appraisals in the context of estate trustees and private sales. In this instance, the two estate trustees sold the deceased’s home for $30,000 below fair market value. The court ordered the trustees to repay this amount to the estate, finding their actions incorrect but not egregious enough to warrant damages.
APPRAISALS IN ESTATE MATTERS
Following their mother’s death, the Respondents secured two appraisals of the family home. The first appraisal, conducted by Sarah Moysiuk of Re/Max on April 14, 2023, included a personal inspection and a market comparison. Ms. Moysiuk found that comparable properties sold for prices ranging from $265,000 to $330,000. She estimated the market value of the home, if listed for sale, to be between $290,000 and $310,000. The second appraisal was provided by Pamela Agiuar, a Sales Representative at Century 21 Realty, who estimated the home’s market value at $295,000 as of April 2023. Both appraisals were submitted as exhibits in the Respondents’ documentation.
In contrast, the Applicant obtained her own appraisal from Laura Tourangeau of Re/Max, dated June 25, 2023. This appraisal indicated a market value of between $340,000 and $355,000, based on two comparable properties that sold for $310,000 and one that sold for $352,000. However, this appraisal was a “drive-by” assessment, relying on a description and photos provided by Sandra, and did not include an interior inspection of the home.
The court assessed the credibility of each appraisal based on the methods used. The appraisals from Moysiuk and Agiuar included personal inspections and market comparisons, making them more robust. In contrast, the appraisal by Tourangeau was deemed less reliable since it was a “drive-by” assessment without an interior inspection.
The court noted the differing estimated values, with the Respondents’ appraisals suggesting a range between $290,000 and $310,000, while the Applicant’s appraisal suggested a higher range of $340,000 to $355,000.
Ultimately, the court placed greater weight on the appraisals that involved direct inspection and more comprehensive analysis, indicating a preference for appraisals grounded in thorough market evaluation.
TRUSTEE REMOVAL NOT WARRANTED
The court noted with respect to the appraisals:
“I do not find that the Trustees acted maliciously, but rather believing that they were carrying out their mother’s wishes. Their actions were not egregious nor excessive. Bryan and Debra do not appear to be experienced trustees and are administering a simple estate. In the circumstances, I do not find that deterrence is necessary, and I decline to award any further damages.”
The court was not satisfied that it is appropriate to remove the Trustees. The court did not find that the past conduct of the Trustees warrants their removal. Further, the apparent animosity amongst the siblings was not enough to remove them.
Deziel v. Deziel, 2024 ONSC 5279 (CanLII)
https://canlii.ca/t/k707x
