In a contested passing of accounts arising from protracted intra-family estate litigation, the court accepted a court-appointed forensic accountant’s reconstructed estate accounts where the original estate trustees had failed to maintain adequate records.
The court found the estate trustees had mismanaged estate assets, engaged in self-dealing, failed to comply with the will’s direction concerning farm expenses and sale, and fell well below the standard of care of a person of ordinary prudence.
No reserve was permitted for alleged contingent legal fee liabilities because the evidentiary foundation was lacking.
The trustees were held jointly and severally liable for losses reflected in the beneficiary equity accounts, with repayment to be effected from their distributive shares before any distribution to them.
