Can an executor be paid for handling probate in Ontario?

Yes. A trustee or personal representative is entitled to a fair and reasonable allowance for their care, pains and trouble and the time spent administering the estate, as a judge of the Superior Court of Justice allows. The allowance can be fixed when the trustee's accounts are passed.

The Trustee Act sets only a fair and reasonable standard, decided by a judge, not a fixed percentage. Where the will or trust document itself fixes the allowance, section 61 does not apply. A trustee who is a lawyer and provided necessary professional services to the estate may be allowed more for those services. You may hear a rule-of-thumb percentage mentioned, but treat it as a guide, not a legal entitlement.

For tax, CRA treats fees earned to administer an estate as income from an office, reported in box 14 of a T4 slip, when the executor does not act in that role in the regular course of business. If the executor acts in that capacity in the regular course of business, such as a trust company, the fees are not office income reported on a T4 slip. Keep a record of your time and work, and ask an accountant how to report it.