How is an estate trustee's compensation calculated when it comes from the proceeds of a property sale?

Estate trustee compensation in Ontario isn't set by a single fixed dollar figure or formula written into a statute; instead it's typically calculated as a percentage-based amount applied to the value of the estate's capital and income that passes through the trustee's hands, including proceeds generated by selling property, reflecting the work involved in administering that value. Where a will specifies compensation, that provision generally governs, but where it doesn't, compensation is usually worked out based on this kind of percentage approach, adjusted for the actual complexity and effort the estate required.

Because the amount isn't automatic, it typically needs to be approved either by agreement of the beneficiaries or through a court process called passing of accounts, where the trustee's compensation and overall administration are reviewed and formally approved. A sale of real estate that generates significant proceeds can meaningfully affect the calculation, since it increases the value the trustee is compensated for handling, but a trustee shouldn't assume they can simply deduct a chosen amount from sale proceeds without going through the proper approval process. Anyone acting as trustee, or a beneficiary questioning proposed compensation, should get advice on how the calculation and approval process actually works for that specific estate.