Can an executor be paid for their work in Newfoundland and Labrador?
This answer covers the law of Newfoundland and Labrador.
Yes, an executor can be paid, but not simply by taking what seems fair. In Newfoundland and Labrador the court may allow remuneration beyond actual expenses, and the total cannot exceed 1/20 of the realized value of the assets. If the will sets out compensation for the executor, that generally replaces the court-allowed amount.
Within 1 year after the grant issues, the holder must file in the registry an inventory and valuation, a statement of estate received, a statement of disbursements and a statement of the estate still outstanding. Accounts must be accompanied by an inventory and sworn statement, although a judge may dispense with accounting if it is unnecessary. Beneficiaries, creditors or sureties can seek an order requiring an inventory and sworn account on ten clear days' notice.
On an application by an interested person, the court may remove an executor or administrator under section 123 of the Judicature Act. An executor who is unsure about a decision may apply to the court for directions. How a fair amount is set within the ceiling depends on the facts, so keep careful records of your work and expenses and get advice before paying yourself.
Key takeaways
- The court may allow remuneration beyond actual expenses, and the total cannot exceed 1/20 of the realized value of the assets.
- Compensation set out in the will generally replaces the court-allowed amount.
- Beneficiaries, creditors or sureties can seek an order requiring an inventory and sworn account on ten clear days' notice.
- Any interested person may apply to the court to remove an executor, and an executor may apply for directions.