WP v. TZ, 2021 BCSC 2092

Velletta Pedersen Christie represented an individual in a claim to remove her as a trustee over a trust set up in her father’s will.

The Defendant was one of three children.  The estate was divided into one part for each child.   The Plaintiff’s share was placed into a trust, with the Defendant as the trustee.  Contrary to the will, the Plaintiff sought to have his sister, the Defendant, removed as the trustee, and their other brother added as the trustee in her place. 

The Courts have authority to remove and replace a trustee, pursuant to the law of equity, and pursuant to the Trustee Act.  The overarching concern for the court is whether or not the trustee has placed the assets of the trust in jeopardy.

The court summarized a number of principles to be considered, including that:

1. Mere conflict or friction between the trustee and the beneficiary is insufficient to justify removal; 
2. The court will not lightly interfere with the testator’s choice of trustee; and
3. Acts or omissions by the trustee must be of such a nature as to endanger the administration of the trust.

This matter proceeded to a 5 day trial, which was held entirely by video, which was a first for the firm at the time.

The court accepted that the Defendant’s actions and investments made on her brother’s behalf were in good faith, and that the trust was never at risk.

The Defendant was ordered her costs, to be paid from the trust.

This case was argued by W. Eric Pedersen

Case link: Parsons v Zaranski, 2021 BCSC 2092 (CanLII)