Case Studies

Estate Settlement Held Up

The Problem

Case study:
What can be learned: the expert's advice Read More

From the Client's Perspective

When an elderly couple sold their home, their daughter invested the money with RBC Dominion Securities (RBC DS) in her mother's name. She believed she later sent written instructions to add her father's name. When her mother passed away, she learned that her father's name was never added to the account and that RBC DS couldn't transfer the money to him. The daughter said she had assumed that the change had been made, but that the mailing label couldn't accommodate both full names.

From RBC DS' Perspective

RBC DS said that they had not received any written instructions and that all correspondence and tax receipts listed only the mother's name. They could not legally transfer the account to the client's father because it was not held jointly with right of survivorship. They added that Revenue Canada regulations prevent changing the name on an account after someone has died. Additionally, if the account were transferred and the will contested, which was a distinct possibility, RBC DS could face financial liability.

The Resolution

The Office of the Ombudsman reports, "All the parties wanted the assets to go to the husband. But they were caught up in thinking about solutions that couldn't work, like changing the names posthumously.

"When our office stepped in, we spoke with RBC DS and the client frequently over the course of a week. We stayed away from what couldn't be done and focused on the common interest.

"It became clear that the only way to transfer the money was to have the will probated. The father was named as beneficiary. So, after probate, the assets would legally be his. As a goodwill gesture, RBC DS paid the cost of probate on behalf of the client. The account was then transferred to her father's name."

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