Estate Planning

Millionaire Widow Seeks Support

By Hull & Hull LLP

 A recent Ontario decision, MacDougall v. MacDougall Estate [2008] O.J. No. 2930 (S.J.C.), dealt with the issue of adequate provision for proper support under Part V of the Succession Law Reform Act (“SLRA”). 

The deceased died in 2004.  His widow (his wife from a second marriage) commenced an application for support from the deceased’s estate.   She claimed that the deceased had failed to make adequate provision for her.  The deceased had left her over $1 million in assets, which represented a significant portion of his assets.  The balance of the deceased’s estate was left to his children from his first marriage, and his grandchildren and great grandchildren.  The court found that the deceased had given careful consideration to the disposition of his estate and the needs of his widow. 

Although the widow qualified as a dependant at the time of the deceased’s death for the purposes of the SLRA, the court ultimately held that she was not entitled to support.  The widow had not met the burden of satisfying the court that the deceased had failed to make adequate provision for her.  Her current assets invested conservatively would generate $45,000.00 per annum net of tax.  The court found that the widow’s claim for support was driven not by need, but by her wish to live the lifestyle she had enjoyed with the deceased prior to 1998 when the deceased became ill. 

Have a great day!

Bianca La Nevewww.canlii.org/en/on/onsc/doc/2008/2008canlii37061/2008canlii37061.html

Full post as published by Toronto Estate Law Blog on September 29, 2008 (boomark / email).