How Does the Court Review Executor Compensation in Alberta?
This answer covers the law of Alberta.
The court reviews executor pay by asking whether it is fair and reasonable for the responsibility of administering the estate. There is no set percentage in the Schedule; instead the court looks at factors such as the gross value of the estate, the complexity of the work, skill, time spent and the number of personal representatives named in the will.
At a hearing the court can set the personal representative's compensation and give directions about it. Additional compensation may be allowed for extra roles, unusual difficulties or instructing on litigation. If the will fixes the compensation, no greater amount can be charged or allowed unless the affected beneficiaries agree or the court orders otherwise. Pay before the administration is finished is allowed only if the will provides for it, all affected beneficiaries agree, or the court orders it.
If the court later reduces compensation already paid, the representative must immediately repay the disallowed amount to the estate, with interest at a rate and for a period the court sets. Compensation must also be reduced where a lawyer or other agent performs some of the duties. Whether an amount is fair depends on the facts, and a lawyer can confirm.
Key takeaways
- A personal representative may receive fair and reasonable compensation, and the Schedule sets no percentage.
- The court looks at factors such as the estate's gross value, complexity, time spent and the number of representatives named.
- If the will fixes the compensation, no greater amount can be charged unless the affected beneficiaries agree or the court orders otherwise.
- If the court reduces compensation already paid, the representative must immediately repay the disallowed amount, with interest set by the court.