Appointing Your Children as Executors: Lessons from Sassano v. Iozzo (2024 ONSC 1517)

Many Canadians choose their children to administer their estates after they pass away. While this can be a natural choice, the recent case of Sassano v. Iozzo (2024 ONSC 1517) highlights some potential pitfalls to consider.

The Case: Sibling Disagreement over Estate Management

The case involved two sisters, Ms. Sassano and Ms. Iozzo, who were named co-executors in their mother's will. However, neither sister ever formally applied for a Certificate of Appointment as estate trustee. This became a key point when Ms. Sassano sought to have Ms. Iozzo removed as executor due to a lack of cooperation in managing the estate's main asset – a property.

The Importance of Formal Appointment

The court acknowledged its authority to remove trustees under specific circumstances. However, the case also emphasized a distinction based on a 2013 Court of Appeal decision (Chambers v. Chambers). Someone named as an executor can only be officially removed after receiving a certificate of appointment. If no certificate is obtained, the person simply isn't chosen as the executor, referred to as being "passed over."

Applying the Law to the Case

In this instance, since neither sister had the necessary certificate, the court ruled that Ms. Iozzo could not be removed. However, due to her inaction and lack of cooperation, the court determined she could be "passed over" for the role.

Key Considerations When Choosing Your Children as Executors

The case highlights several important considerations for parents choosing their children as executors:

• Communication is Key: Discuss your wishes with your children openly and ensure they are comfortable and prepared to take on the responsibility.

• Consider Individual Circumstances: Think about your children's personalities and abilities. Would they be able to work together effectively?

• Formalize Appointments: Ensure your chosen executors understand the importance of obtaining a Certificate of Appointment after your passing.

• Alternatives Exist: If you have concerns about your children's ability to manage the estate together, consider appointing a professional co-executor or a trust company.
  

By following these tips, you can help ensure a smoother and less conflict-ridden administration of your estate after you're gone.