In cases where challenges to wills or estate holdings are subject to litigation, a Baker Tilly representative can be appointed by the court in Ontario (under the Estates Act) to serve as an Estate Trustee During Litigation, or ETDL.

As an officer of the court, the ETDL acts as an impartial executor ⁠–⁠ a neutral and independent third party to all concerned stakeholders. Acting in both a fiduciary and an executory capacity, the ETDL is responsible for controlling and preserving the estate’s assets and managing its affairs in a manner transparent to all.

If ordered by the court, the trustee can also sell its assets and safeguard the proceeds until the litigation is resolved.

Key ETDL responsibilities

An ETDL strives to eliminate contentious issues among the estate’s beneficiaries (usually the next of kin) by managing and protecting its assets until they can be distributed once the litigation is resolved.

Additionally, the ETDL can be required to gather documentation and disseminate information to help the parties involved resolve the dispute.

The ETDL’s duties generally include:

• Determining the value of the estate’s assets and liabilities
• Protecting and safeguarding its assets
• Preserving and, if necessary, tracing anything discovered to be missing
• Maintaining separate trust accounts
• Reviewing and handling protective and other disbursements
• Ascertaining, defending, settling and paying any debts
• Filing income tax returns and conducting tax planning
• Investing the estate’s funds to maximize realizations until discharged from duties or the funds are otherwise distributed

Full-spectrum expertise

Unlike institutional trustees such as trust companies or even lawyers who often serve as court‑appointed ETDLs, the scope of Baker Tilly’s financial and transaction advisory services enables our professionals to help carry out additional administrative responsibilities that complement the role.

Our advisors are able to see the big picture, including the tax implications of potential transactions. And our cross‑disciplinary team is on hand to support with tax, transaction advisory, forensic accounting, valuations and business advisory.

Given the extent and often complex nature of the ETDL’s duties, Baker Tilly  Canada has both the expertise and resources to effectively handle every expectation and demand made by the courts, the lawyers representing the parties involved and the parties themselves.

Contact your Baker Tilly advisor to learn more.