When a family member dies, someone often steps in to handle practical matters long before an executor or administrator is formally appointed.
They may secure the home, pay ongoing bills, maintain property, deal with personal belongings, or communicate with creditors.
While these actions are often well-intentioned, many people are surprised to learn that taking control of estate affairs can create significant legal responsibilities.
The Saskatchewan Court of King's Bench decision in Whelan v. Chaszewski, 2021 SKQB 286 demonstrates that a person who informally administers an estate may later be required to provide a full accounting of their actions, even if they were never formally appointed as executor or administrator.
The Dispute
The case arose after Michael Chaszewski died without a will.
Following his death, one of his children moved into the deceased's home and began handling various estate-related matters. Over the years, he:
- Occupied the home;
- Paid property taxes;
- Maintained insurance;
- Paid utilities;
- Performed substantial renovations;
- Managed personal property; and
- Attempted to deal with outstanding financial matters.
Years later, disputes arose among the siblings concerning the estate, the home, and the administration of estate assets.
The court was asked to determine who should administer the estate and whether the individual who had been managing estate affairs should be required to account for his actions.
Acting Without Formal Authority Can Still Create Obligations
One of the most important lessons from the decision is that formal appointment is not the only source of responsibility.
Many people assume that unless they have received a Grant of Administration or probate appointment, they have no obligation to explain what they did with estate assets.
The court rejected that approach.
Where a person actively takes control of estate property and begins administering estate affairs, they may later be required to account for their actions.
The law focuses not only on official titles but also on conduct.
What Is Informal Estate Administration?
Informal estate administration can occur when a person:
- Takes possession of estate assets;
- Pays estate expenses;
- Maintains estate property;
- Distributes personal belongings;
- Collects funds belonging to the estate; or
- Makes decisions concerning estate affairs.
These activities often arise because family members are trying to help.
However, once someone assumes responsibility for estate property, record-keeping becomes extremely important.
The Importance of Keeping Records
A recurring theme in estate litigation is documentation.
Courts are frequently asked to determine:
- What assets existed;
- What debts were paid;
- What property was sold;
- What expenses were incurred;
- Who received assets; and
- Whether transactions benefitted the estate.
Without proper records, answering those questions becomes difficult.
In Whelan v. Chaszewski, the court ultimately ordered a detailed accounting of the individual's dealings with estate assets over a lengthy period of time.
The accounting was required to include information regarding:
- Assets;
- Debts;
- Income;
- Expenses;
- Property transfers; and
- Tax matters.
Living in Estate Property Can Create Additional Issues
The dispute also involved a family home that remained occupied following the deceased's death.
This is a common source of estate litigation.
Many families assume that a child who lived in the home before or after a parent's death can simply continue living there indefinitely.
Unfortunately, the legal issues are often more complicated.
Questions may arise regarding:
- Fair market value;
- Occupation rent;
- Maintenance costs;
- Property improvements;
- Property taxes; and
- Distribution of the home's value among beneficiaries.
The longer a property remains unresolved, the more complex these issues can become.
Occupation Rent Claims
One of the most significant issues left unresolved in the case was whether occupation rent should be paid.
Occupation rent may arise when a person receives the benefit of occupying property while other beneficiaries are deprived of the ability to use or benefit from that same asset.
Courts may consider factors such as:
- Length of occupancy;
- Fair market rental value;
- Expenses paid by the occupant;
- Maintenance contributions; and
- Improvements made to the property.
Importantly, the court deferred these issues until a proper accounting process could occur.
This highlights a key principle: occupation rent disputes often depend on a detailed review of the overall financial circumstances.
Renovations Do Not Automatically Create Ownership Rights
The individual occupying the property had completed substantial renovations and repairs over several years.
This fact was important, but it did not automatically determine ownership rights.
Estate disputes frequently involve claims that:
- Renovations increased the property's value;
- Repairs preserved estate assets; or
- Personal funds were invested into estate property.
While these contributions may be relevant, they do not necessarily give a person ownership of the property itself.
Instead, courts typically consider those expenditures as part of a broader accounting process.
Conflicts of Interest Matter
Another important lesson from the decision involves conflicts of interest.
The court ultimately declined to appoint the individual who was living in the property as administrator of the estate.
The reason was straightforward.
His personal interests regarding the property conflicted with the interests of the estate and the other beneficiaries.
An administrator is expected to remain neutral and act for the benefit of all interested parties.
When a person's personal interests become intertwined with disputed estate assets, courts may conclude that someone else is better positioned to administer the estate impartially.
Estate Administration Is About the Beneficiaries as a Whole
Courts consistently emphasize that estate administration is not about advancing the interests of one beneficiary over another.
The administrator's role is to:
- Protect assets;
- Gather information;
- Pay debts;
- Preserve estate property;
- Account for transactions; and
- Distribute assets fairly.
The court found that the administrators should be individuals best positioned to advance the interests of all beneficiaries rather than those of a single interested party.
Practical Lessons for Families
Obtain Formal Authority Promptly
The longer an estate remains unmanaged, the greater the risk of disputes.
Keep Detailed Records
Anyone dealing with estate assets should maintain complete documentation.
Separate Estate Funds From Personal Funds
Commingling funds creates significant legal and practical difficulties.
Be Careful With Estate Property
Occupying, renovating, or controlling estate assets may later require explanation and justification.
Address Family Disagreements Early
Small disputes often become larger and more expensive as time passes.
The Bottom Line
Whelan v. Chaszewski, 2021 SKQB 286 is an important reminder that informal estate administration does not eliminate accountability. A person who voluntarily assumes responsibility for estate affairs may ultimately be required to provide a detailed accounting of everything they have done with estate assets.
The decision also highlights the importance of neutrality, proper record-keeping, and obtaining formal authority before making significant decisions about estate property.
How MerGen Law Can Help
At MerGen Law, we assist clients throughout Alberta with estate administration, accounting applications, occupation rent disputes, executor and administrator disputes, intestacy matters, fiduciary duty claims, and estate litigation. Whether you are administering an estate or concerned about how someone else has managed estate assets, our team can help protect your interests.
This article is intended for informational purposes only and does not constitute legal advice. Individuals facing concerns about elder abuse should seek professional advice tailored to their specific circumstances.