The Public Guardian and Trustee, acting for an incapable beneficiary, applied to require the estate trustee to pass accounts.
The estate trustee relied on a release signed by the beneficiary before she was declared incapable.
The application judge ordered the passing of accounts, finding 'red flags' regarding the beneficiary's capacity.
On appeal, the Divisional Court found the application judge erred in applying s. 2(4) of the Substitute Decisions Act by failing to consider what the estate trustee actually knew about the beneficiary's capacity at the time the release was signed.
The appeal was allowed and the order to pass accounts was set aside.
