Case information

Wills and estates — Wills — Interpretation — Administration of estates — Will granting a beneficiary the option to purchase property, including land in fee simple, relating to farming business — Will specifying purchase price and providing that the price may be adjusted downward but not upward — At time of death, testator leasing out farmland but no longer actively involved in farming operations — Whether testator still carrying on farming business — Standard of review for interpretation of a will — Whether will should be interpreted in light of surrounding circumstances that existed at the time the will was made, or at the time of the testator’s death —Succession Law Reform Act, R.S.O. 1990, c. S.26

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Testator Dorothy VanSickle and her husband had owned and operated a hobby farm for many years. After her husband died Ms. VanSickle’s eldest son, respondent Howard VanSickle, began leasing the farmland from his mother. He continued to do so until her death.

After Ms. VanSickle’s death, her estate trustees brought an application for direction concerning the interpretation of a clause in the will which granted Howard VanSickle an option to purchase his mother’s farming business, including the farm land and equipment, for a specified price.

The application judge held that Ms. VanSickle did not carry on her farming business on the date of her death and that her will was ineffective in granting Howard VanSickle an option to purchase the farm property and equipment. Howard and his brother, respondent Doug VanSickle, appealed from the application judge’s decision. The Court of Appeal allowed the appeal.