Strata and Condo Law

Forced Interim Distribution

By October 23, 2017 No Comments

There is not a wealth of case law on forcing interim distributions from an estate, that is paying out part of the inheritance before all of the estate administration is complete, or before litigation involving the estate has been concluded. In situations where there is ongoing litigation involving an estate, the estate cannot payout funds for any purpose other than estate debts. Therefore, some beneficiaries of estates cannot receive their inheritance for years as they wait for litigation to be concluded.

Kimberly Rule applied successfully to Court to have an interim payment made to her clients as the litigation tying up the estate¬†for more than 2 years. In the case of Nykoryak v Anderson, 2017 BCSC 1800, the deceased had made a will 3 months before passing away. The new will left his entire estate to 2 of his 3 children: the third child had been born out of wedlock and was not part of the deceased’s life.

As he was cut out of his father’s estate, the son sued the estate saying that his father didn’t have the mental capacity to create a will at the time or, if the will was valid, he should get a piece of the estate. Since the son started his litigation, he hadn’t taken any steps to move his case forward.

Therefore, Ms. Rule applied to have the will declared valid (that the deceased had the necessary capacity to create the will at the time), applied to have an interim distribution out of the estate to the 2 siblings, and applied to have the court file moved to Kelowna from Vancouver. She was successful on all applications. You can read more about the case here.

Taeya Fitzpatrick

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