Is an executor entitled to be paid for their work in Ontario?

Yes. In Ontario, an executor is entitled to fair and reasonable compensation for their work, even if the will is silent on the point. This is set out under the Trustee Act. If the will specifies a fee, the executor may choose to take what is offered or apply to the court for a different amount.

Where the will does not address compensation, courts have historically used a rough guideline of approximately 2.5% of capital receipts, 2.5% of capital disbursements, and 2/5 of 1% of the average annual value of the estate for ongoing management — but these are guidelines, not fixed rules. Courts weigh the size and complexity of the estate, the time invested, the skill required, and the results achieved.

If beneficiaries agree to a specific amount, an executor can settle compensation without court involvement. An executor who is also a beneficiary can receive both their inheritance and compensation, unless the will provides otherwise. Compensation is taxable income to the executor and must be reported on their personal tax return.