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Notice to Creditors on Website Is Sufficient to Protect Trustees from Personal Liability Under The Trustee Act

While estate trustees are not required to advertise for creditors, failure to do so can, in certain circumstances, leave an estate trustee personally liable should a creditor or creditors make claims against an estate once it has been distributed. There are no specific requirements for advertising for creditors in the Trustee Act, RSO 1990, c T.23, however, it is generally accepted practice to place a Notice to Creditors in the deceased’s local newspaper or to advertise for creditors with the Ontario Gazette. These options are often expensive, and estate trustees can face a difficult choice between expending significant estate assets on advertising to creditors or leaving themselves exposed to personal liability down the line.

However, in a Judgment rendered on July 7, 2017, in the Estate of Corrol Allen Dale, Justice Conway held that a Notice to Creditors posted on noticeconnect.com was sufficient to grant a trustee protection from personal liability under section 53(1) of the Trustee Act. The fee for posting a Notice to Creditors online with Notice Connect is $130, providing estate trustees with an additional, and in many cases less expensive, means of protecting themselves against personal liability with respect to creditors of an estate.

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