Introduction
In the recent case of Ingram v. Kulynych Estate, 2024 ONCA 678, the Ontario Court of Appeal clarified the timeline for bringing equitable trust claims against estates. The court determined that such claims fall under the two-year limitation period specified in Section 38(3) of the Trustee Act, rather than the ten-year period outlined in section 4 of the Real Property Limitations Act (RPLA). This decision also reinforced the framework for assessing which statutory limitation applies.
Case Background
Following the death of Mr. Kulynych in 2017, he left nothing in his will for his long-time common-law partner, Ms. Ingram. Four years later, Ms. Ingram filed a claim against the estate, asserting that her financial and emotional support entitled her to an equitable trust share of the estate, claiming Mr. Kulynych had unjustly enriched himself by renting out his property while residing with her.
The estate sought to dismiss Ms. Ingram's claim, arguing it was statute-barred under section 38(3) of the Trustee Act, which imposes a two-year limit on claims against estates for actions by the deceased. However, the initial motion judge ruled it a property claim under the RPLA, applying the ten-year limitation instead.
Court Decision
The Court of Appeal reversed the motion judge's decision, ruling that Ms. Ingram's equitable trust claim was indeed statute-barred under the two-year limitation. The Court provides a detailed review of the legislative intent for shorter limitation periods in estate matters and expanded the interpretation of a "wrong" in Section 38(2) of the Trustee Act to include all actionable wrongs, such as unjust enrichment. Ms. Ingram's claim was thus found to fall within this definition and was barred by the two-year limitation period, which began upon Mr. Kulynych's death.
Key Takeaways
- Limitation Periods for Equitable Trust Claims: Claims against an estate asserting equitable trusts are subject to the two-year limitation under Section 38(3) of the Trustee Act, rather than the more general ten-year period of the RPLA. The term "wrong" encompasses all actionable wrongs, reinforcing the importance of precise pleading by claimants.
- Prompt Action Required: Claimants should act swiftly after the death of a potential defendant to assert equitable trust claims. For estate trustees, the two-year limitation offers a clear timeline for administering and distributing the estate if no claims arise within that period.
This decision serves as an important reminder of the necessity for timely action when considering a claim against an estate.
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