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Estate Planning

: Toronto Estate Law Blog

Custody, Inventory, and Valuation of Estate Assets

By Hull and Hull LLP

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An estate trustee must, as soon as possible after the death of the testator, acquaint him or herself with the nature and circumstances of the estate assets and scrutinize all relevant documents that may help ascertain the condition of the estate.

Once the estate assets are ascertained, the estate trustee must take possession or secure the estate assets within a reasonable period of time.

The concern is not simply to realize the assets of the estate but to ensure their preservation and to optimize their value. The nature of this obligation will depend on the nature of the asset. The simpler the asset, the simpler the duty. For instance, there is very little difference between realizing a bank account and ensuring its preservation. For more complex assets, the duty becomes more onerous. For example, the estate trustee will need to ensure that adequate insurance is in place on real property. He or she will need to see to the making of any necessary repairs required to catch the highest sale price. A property manager may have to be engaged if there is an apartment complex (for example) that is required to generate income for a life tenant.

A Company that was a going concern at the time of the testator's death presents special challenges which demand far more sophistication of the estate trustee. In all likelihood, the choice of estate trustee will have been dictated by his or her familiarity with the Company in question or his or her degree of business acumen. It is not uncommon to see a professional institutional trustee appointed either in such capacity or as co-estate trustee.

David Morgan Smith

Full post as published by Toronto Estate Law Blog on July 05, 2012 (boomark / email).