Can a beneficiary demand security or a holdback before agreeing to a passing of accounts release?

A beneficiary who isn't fully comfortable signing off on an informal accounting isn't limited to a flat "yes" or "no" — asking for some form of security or a holdback before agreeing to a release is a reasonable middle ground, and it's common in practice where there's lingering uncertainty, like a pending tax clearance certificate or an asset that hasn't fully settled yet.

Whether the trustee agrees to that is ultimately a negotiation rather than something a beneficiary can force through an informal release process — if the trustee won't agree to a holdback and the beneficiary still isn't comfortable, the beneficiary's stronger tool is refusing to sign the informal release and instead requiring the matter to go through a formal, court-supervised passing of accounts. That route gives a beneficiary real leverage, since the trustee can't simply proceed as if the accounts were accepted.

In practice, many estates strike a middle path anyway: keeping back a portion of a beneficiary's distribution until known uncertainties, like a CRA clearance certificate, resolve, precisely so a release can be signed without anyone taking on unnecessary risk. A beneficiary uneasy about signing without protection should raise the specific concern directly, in writing, rather than simply refusing without explanation.