As administrator, a fiduciary duty is owed to the Estate and its beneficiaries, requiring honesty, good faith, and a reasonable standard of care. This duty is outlined in section 142 of WESA and supported by common law, as seen in cases like Fales v. Canada Permanent Trust Co., which emphasizes acting in the beneficiaries' best interests and avoiding conflicts of interest.
Elaboration:
Fiduciary Duty
:Administrators, like executors, are considered fiduciaries, meaning they hold a position of trust and confidence towards the estate and its beneficiaries.
WESA (Wills, Estates, and Succession Act):
Section 142 of WESA in British Columbia outlines the specific duties of a personal representative, which includes acting honestly, in good faith, and with the care, diligence, and skill of a reasonably prudent person.
Common Law:
The fiduciary duties are also informed by common law principles, as demonstrated by cases like Fales v. Canada Permanent Trust Co..
Best Interests:
The fiduciary duty requires the administrator to act in the best interests of the beneficiaries, avoiding any conflicts of interest and prioritizing the well-being of the beneficiaries.
Care, Diligence, and Skill:
The administrator must exercise the same care, diligence, and skill that a reasonably prudent person would in similar circumstances.
Breach of Duty:
If an administrator breaches their fiduciary duty, they may be liable for compensation to the beneficiaries for any losses caused by the breach.
Beneficiary Rights:
Beneficiaries are entitled to an accounting of the estate's assets and distributions, and they can take legal action against the administrator if they breach their fiduciary duty.