How much can an executor charge for administering an estate in Ontario?
In Ontario, an executor (called an estate trustee) is entitled to reasonable compensation for their work unless the will sets a specific amount or the executor agreed to act without payment. The traditional guideline used by courts is a tariff of approximately 2.5% of the value of assets received into the estate and 2.5% of assets distributed out, plus a management fee for estates administered over time — for a combined total often around 5% of the estate's capital value. Courts also consider a care and management fee for income earned during administration.
However, this tariff is a starting point, not a fixed rule. A court on a passing of accounts can award more or less depending on the actual work done, the complexity of the estate, the skill required, and whether the executor acted efficiently and honestly. Executors who did very little work or who caused harm to the estate may receive less or nothing. Executors who dealt with unusual complexity may receive more.
Beneficiaries have the right to object to executor compensation at the passing of accounts. If a beneficiary believes the claimed fees are too high, the court will assess the reasonableness of the work and the amount claimed.
If you are an executor, keeping detailed time records and documenting your work throughout the administration will support your claim for fair compensation.
Key takeaways
- Executor compensation in Ontario is typically around 5% of estate value but is not fixed.
- Courts assess reasonableness based on the work done, complexity, and outcome.
- Beneficiaries can object to compensation at a passing of accounts.
- Executors should keep detailed records of their work to support their fee claim.