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HERGOTT: Conflict-of-interest perspectivev in estates
The court said Nicole lived in the home for nine years in breach of an agreement and owed occupational rent before the estate could sell it.
In Thomas v. Leslie , the British Columbia Supreme Court ordered Nicole to pay $129,600 in "occupational rent" for nine years of occupying her late mother Virginia Thomas's Dawson Creek home without payment.
Nicole and co-executor Kimberly were tasked with managing the estate, but Nicole moved into the house in breach of a purchase agreement. Kimberly failed to enforce the sale, allowing the property to fall into disrepair.
After approximately nine years, beneficiary Barry successfully petitioned the court to remove Nicole and Kimberly as co-executors. He appointed his children, Adam and Jessica, as new estate administrators.
Adam and Jessica asked the court to require Nicole to pay "occupational rent," providing evidence that a reasonable monthly rate was $1,200. The court agreed, deducting expenses Nicole paid to maintain the property.
Lawyer Paul Hergott notes that executors must act to enforce evictions when in the estate's best interest. He advises choosing executors whose interests will not conflict with the estate's financial well-being.