Estate disputes are often emotionally charged, but they can also be financially devastating. A recent Ontario Superior Court decision illustrates just how high the stakes can be, and why careful estate planning and experienced legal advice are critical.
The Case: A Family Dispute Over a $23 Million Farm and Millions in Investments
In Schickedanz v. Schickedanz (2026 ONSC 297), the Court was asked to decide the costs of a bitter dispute between siblings over their late mother’s estate. At the centre of the litigation were:
- A family farm and home valued at approximately $23 million, and
- Investment accounts worth roughly $4 million.
One sister sought to rely on a handwritten document she said was a valid codicil to her mother’s Will. If upheld, it would have transferred the entire $23 million farm to her alone. Her brothers challenged the validity of that document and also brought a separate application regarding investment accounts they alleged were being held in trust for the estate.
The matter proceeded to an eleven-day trial. The Court ultimately found that the handwritten codicil was invalid due to suspicious circumstances. The brothers were also successful in recovering the investment accounts for the estate.
The Real Shock: Who Pays the Legal Bills?
While the estate assets were enormous, the legal costs were staggering as well. By the end of the proceeding, legal fees for the brothers alone exceeded $3.2 million.
Historically, estate litigation followed a different rule than most civil cases. Courts often ordered that all parties’ legal costs be paid out of the estate, regardless of who won or lost. This was based on the idea that disputes often arose because of the testator’s conduct or unclear estate planning.
That approach has now firmly changed.
The Modern Rule: Loser Pays
The Court confirmed that estate litigation now generally follows the same principle as other civil litigation: the loser pays. Estates are no longer treated as an automatic source of funds to cover everyone’s legal fees.
The Court emphasized that this modern approach exists to prevent estates from being depleted by unnecessary or self-interested litigation. Exceptions are limited and usually apply only where public policy requires court involvement, such as ensuring a valid will is properly interpreted or administered.
In this case, the sister who unsuccessfully advanced the invalid codicil was ordered to personally pay over $2.2 million in legal costs to her brothers, as well as personally paying for her own legal fees of $1.3 million. Those costs were not paid out of the estate. If she failed to pay, the costs would be deducted directly from her share of the inheritance.
The message from the Court was clear: parties who bring or pursue unsuccessful estate litigation do so at serious financial risk.
The Lesson: Estate Planning Is Far Cheaper Than Estate Litigation
This decision highlights a reality that many families do not consider until it is too late. The cost of properly preparing a will and estate plan with a qualified lawyer is almost always a fraction of the cost of litigating after death.
Clear, professionally drafted estate planning documents can:
- Reduce ambiguity and disputes between beneficiaries
- Protect vulnerable testators from allegations of undue influence
- Minimize the risk of costly litigation
- Preserve estate assets for intended beneficiaries, rather than legal fees
By contrast, once a dispute reaches court, costs can escalate quickly, especially where large estates, expert evidence, and lengthy trials are involved.
However, as demonstrated by the successful brothers, litigation can sometimes be necessary to protect the wishes of the deceased, and ensure their estate planning is upheld.
How We Can Help
Whether you are planning your estate or facing a dispute involving a will or estate, early legal advice matters. Proper planning can prevent litigation entirely. Skilled representation can also help manage risk if litigation becomes unavoidable.
If you are looking to put an estate plan in place, update an existing will, or are involved in an estate dispute, we invite you to contact our office. We would be pleased to discuss how we can help protect your interests and, where possible, avoid the kind of costly outcome seen in this case.