What happens if the executor has a conflict of interest with the estate in Ontario?

An executor in Ontario owes a strict fiduciary duty to the estate and all beneficiaries, which means they must act in the estate's best interests — not their own. A conflict of interest arises when the executor's personal interests could influence their decisions about the estate, for example, if the executor is also a beneficiary who might benefit from a particular distribution decision, or if the executor owes money to the estate.

The law does not automatically disqualify someone from acting as executor simply because they are also a beneficiary — this is very common and generally acceptable. The issue arises when the executor takes actions that prefer their own interests at the expense of other beneficiaries or the estate.

If an executor allows a conflict to influence their decisions, they can face personal liability to the estate and may be removed by the court. Beneficiaries who suspect a conflict can apply to the court for an accounting, the removal of the executor, or damages. An executor navigating a potential conflict should seek independent legal advice and be transparent with all beneficiaries.