FP Answers: Can beneficiaries override a parent's wishes in a will?

Beneficiaries can choose to disagree with any harsh conditions — and can do almost anything if they all agree

By Julie Cazzin and Ed Olkovich

Q: My son’s mother-in-law is leaving her house to her three daughters. If one of them wants to sell out her third of the house, she must sell it to the other two sisters for $1, according to the will. Is this legal? And can deceased family members control their estates from the grave as my son’s mother-in-law is trying to do? Or is there a law that overrides such clauses? And can the three daughters make a different arrangement amongst themselves once their mother has passed? For instance, can they buy each other’s shares at fair market value? – Nancy

Financial Post
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FP Answers: Nancy, it’s helpful to step back and think about what your son’s mother-in-law’s motivation is for putting such a clause in her will. Is she perhaps trying to force her daughters to get along with each other after she’s gone?

But her daughters have options. They may choose to disagree with the harsh conditions attached to their house gift and may all decide to accept their gift without the mother’s conditions.

You should not force people to assume the burdens of real estate ownership. This includes paying taxes, dealing with rental income, house repairs, maintenance and so forth. The daughters can negotiate a new deal amongst themselves before taking ownership unless the estate trustee of their mother’s estate refuses to transfer title without them accepting their mother’s terms. Otherwise, the house may need to be sold. That surely was not the mother’s intention.

Family can do almost anything if they all agree. This is also subject to receiving co-operation from the mother’s estate executor.

Forcing a sale for $1 may not be enforced by a court. This condition may be unconscionable. You are correct that this appears to be an attempt by the mother to control her estate and people from the grave. It may be good for a movie plot, but not in real life.

Forcing people to own a piece of property together puts them into a partnership, which is not an easy ship to sail. The house gift may be valid, but the subsequent condition attached to the gift to sell the property to each owner for $1 may not. It should be deleted. It may not be legally enforced. If the daughters accept the condition, it may be too late to change it later.

Any impasse may be resolved by negotiations, mediation or a court order. The mother-in-law should consider updating her will to avoid any risk of disagreement and legal battles after she is gone.

Edward Olkovich is an Ontario lawyer at MrWills.com. He is also certified by the Law Society of Ontario as a specialist in Estates and Trusts Law. This information is not a substitute for legal advice.