June 16th 2025
The recent Ontario court case of Drumonde v. Spellay, 2025 ONSC 3221 highlights critical issues for families inheriting cottages. After their mother’s death, three siblings disputed the fate of a family cottage. The Will intended the property to remain in the family, allowing siblings to opt out for $5,000. The defendant sibling, who lived there year-round for 22 years and covered expenses and upkeep, opposed a sale and offered the $5,000 buyouts per the Will. The applicant siblings wanted to force the sale of the cottage under the Partition Act, arguing that the cottage should not have been converted into a principal residence for their sister.
Ultimately, the court ordered the cottage to be listed for sale within 90 days. However, the defendant’s contributions justified an unequal division of the sale proceeds in her favor. The Court did not say what the division should be, so it is not clear how much the sister will receive after maintaining the property for 22 years.
The lesson in this case is that ambiguous terms (e.g., “remain in the family”) should be avoided. Further, clear time limits for how family members should resolve the issue must be stated, as well as rules for what happens if co-owners disagree. Unique ways to solve problems including coin-tosses for rights of first refusal can be considered if it means finality for family members and avoiding Court. Families can protect their investments through clear legal documentation and proactive planning.
It is recommended that you consult with an estate lawyer to align your Will with your goals. The case above underscores that when emotional ties to family cottages are not managed by clear legal drafting, even well-intentioned estate plans can result in litigation.
To schedule your estate plan consultation, consider reaching out to Liddiard Law today!
Michael Liddiard, BA MA JD
(905) 932-5437
michael@liddiardlaw.ca
Liddiard Law Professional Corporation