When a Trust Goes Off Course
In the September, 2007 edition of Will Power, you will find an article with the above-captioned title, where the author comments on Bolduc v. Carrier, 2006 QCCS 5485, a decision of the Quebec Superior Court with an interesting and tragic fact-scenario.
The parents of Anthony, a three-year old boy with brain cancer, set up a trust for monies donated by the public to help pay for Anthony’s medical care. More than $450,000 was donated and deposited into the trust account. Anthony’s parents were the joint settlors of the trust, and three trustees were named, Anthony’s father, Anthony’s aunt and a family friend.
Anthony sadly died a few months later. At that time approximately $200,000 was remaining in the trust (about $250,000 of undocumented expenses had been paid out). In addition to an accounting issue raised in respect of the spent monies, which I will not address in this blog, the trustees couldn’t agree on what to do with the trust balance. Anthony’s father wanted the money to go to him and his wife, and relied on the Quebec Civil Code (article 1297) to support their position. The other trustees wanted it to go towards payment for “sick children and their care”, pursuant to an article in the trust deed that granted the trustees the discretion to use the funds in that manner.
The Court found that article 1297 didn’t apply, and ordered the funds to be distributed for sick children and their care in accordance with the trust deed. This was an unsurprising and fitting result in the circumstances, particularly when you consider the intention so many people had in their hearts when they donated money for Anthony’s care.Until tomorrow,
Natalia Angelini
