Can an Estate Trustee Be Sued for How They Sold a Property in Ontario?

Can a Beneficiary Sue an Executor for How They Sold an Estate Property?

Yes — but winning such a claim is genuinely difficult. Ontario courts assess an estate trustee’s decisions about property sales using a standard that deliberately gives trustees room to exercise judgment. A beneficiary who simply believes the property could have sold for more, or that repairs were unnecessary, will not automatically succeed. The court must be satisfied that the trustee’s decision was so unreasonable that no honest or fair dealing trustee could have come to it.

That is the core lesson from Stilphen v. Warren, 2026 ONSC 6120 (CanLII), a recent Ontario Superior Court decision. The estate’s main asset was the house at 199 Niagara Street, Niagara-on-the-Lake. The court examined whether the trustees breached their duties in repairing that property, marketing it, and dealing with the expenses of the administration.

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What Standard Do Ontario Courts Use to Review an Executor’s Decisions?

In Stilphen v. Warren, the parties agreed, using the terminology in Walters v. Walters, 2022 ONCA 38, that the court could intervene only if the trustee’s decision was “so unreasonable that no honest or fair dealing trustee could have come to that decision.” The court described this as a high bar. Trustees are not expected to make perfect decisions. They are expected to use their discretion within a reasonable range of potential actions.

The court rejected hindsight as a basis for finding fault. It accepted that, looking back, a sale in 2021 or early 2022 might have produced a greater benefit. The question was whether the decisions made in 2021 and 2022 were made in good faith and with reasonable judgment.

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Does an Executor Have to Repair a Property Before Selling It?

Not necessarily — but choosing to repair and renovate before a sale is not automatically a breach of duty either. In Stilphen v. Warren, the trustees decided in the spring of 2021 to update, repair, and renovate the Niagara-on-the-Lake property before listing it. They did so on the advice of Neil O’Donnell, a real estate broker in Niagara-on-the-Lake. In a May 2021 email, O’Donnell said the property with no renovations was worth $800,000 to $900,000, and that after the renovations he had discussed it should be worth $1.2 million to $1.3 million. The court found the trustees acted in good faith, with reasonable judgment, and on the advice of their real estate advisor. The decision was not so unreasonable that no honest or fair dealing trustee could have come to it, so it was not a breach of duty.

The trustees later obtained independent appraisals from CHS Realty. In July 2021, after most of the exterior work had been done, the appraised value was $1,375,000. In May 2022 the appraised value was $1,735,000, on the assumption that the remaining renovations would be completed in a professional manner. The court treated those appraisals as support for O’Donnell’s opinion that the renovations increased the property’s value. It did not find that the decision to renovate was based on the appraisals. The court accepted that all renovations were completed by August 2022.

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What Happens If an Executor Takes a Property Off the Market or Changes the Listing Price?

The property was listed for a period that commenced on September 6, 2022, at an initial list price of $2,198,000. The trustees later reduced the list price, as low as $1,690,000, and took the property off the market in August 2023. The court found no breach in those marketing choices. It found the trustees acted in good faith, with reasonable judgment, and on O’Donnell’s advice, including when they chose to list at a higher price in the hope of maximizing the estate’s return rather than pricing low for a quicker sale.

The applicants argued the trustees should have sold by May 2022, when the appraisal was $1,735,000, and that waiting caused a loss of $385,000 because the property sold in July 2026 for $1,350,000. The court rejected that claim for two reasons tied to the evidence. The renovations were not completed until August 2022, and the court had already found it was reasonable to wait for that work. There was also no evidence that listing in May 2022 instead of September 2022 would have produced a sale, or that any sale would have been at the appraised value. The court said an appraisal is an abstract value, not proof of a willing buyer at that price.

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Can an Estate Reimburse a Trustee for Expenses Incurred During Administration?

Yes, when the expenses were properly incurred. Under section 23.1 of the Trustee Act, a trustee who believes an expense would be properly incurred may pay it from the trust or pay it personally and recover it, and the court may later disallow the payment or recovery if the expense was not properly incurred. In Stilphen v. Warren, the court put the onus on the trustees to prove the expenses were proper. Applying the propriety factors adopted in Irwin v. Ruberry from Widdifield on Executors and Trustees, the court found that every amount on the Estate Expense List was a proper estate expense and ordered those amounts paid out of the estate to the trustees. It dismissed the applicants’ request that the trustees reimburse the estate for alleged losses.

Our Ontario wills and estates lawyers regularly advise both trustees and beneficiaries on what expenses are defensible and how to document them properly from the outset of an estate administration.

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Is an Executor Entitled to Compensation in Ontario?

Yes. The court confirmed that an estate trustee is entitled to fair and reasonable compensation for the work and services of a trustee. Winkworth v. Murray, 2022 ONSC 907, confirms five factors to take into account in considering the amount. Counsel agreed that the common-practice calculation, based on the size of the estate and the liquidity of the assets, produced $66,054.74 in this case. The court found no reason to deviate from that practice and fixed compensation at $66,054.74. Because it had found no breach of duty, there was no basis to deny compensation.

If you are a trustee concerned about whether your compensation will be challenged, or a beneficiary who believes compensation is excessive, speaking with an estates lawyer about the applicable principles is a practical first step. Readers in the Hamilton and Burlington areas can learn more through our Burlington wills and estates page.

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Questions and Records to Discuss With a Lawyer

If you are a beneficiary concerned about how an estate property was handled, or a trustee facing a challenge to your decisions, the following points may be worth exploring with an estates lawyer:

• What advice did the real estate advisor give before the decision to repair or renovate, and what did any later appraisals actually say?
• Is there evidence that the trustee’s choices were so unreasonable that no honest or fair dealing trustee could have made them, or is the complaint mainly about the outcome in hindsight?
• Are the expenses being claimed documented, and do they relate directly to the administration of the estate?
• Was the trustee’s compensation calculated using a recognized method, and did the court have a basis to deny it?
• What records exist showing the timeline of listing, price changes, and any period off the market?

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If you have questions about an estate property sale, trustee expenses, or executor compensation in Ontario, the team at UL Lawyers is available to discuss your circumstances. Reach out through /connect to start a conversation.

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This article is automated commentary on a public court decision and is for general information only — not legal advice. Decisions rely on facts unique to each case. If you are affected by a similar issue, contact a lawyer for advice specific to your situation.