Can an executor in Ontario receive both a gift under the will and executor compensation?
Whether an executor named in a will can receive both a specific gift and separate executor compensation depends on the wording of the will. In some cases, a will states that a gift to the named executor is "in lieu of compensation" — meaning it is intended to serve as their payment for the executor role, not in addition to it. If the will contains such language, the executor may not also claim separate compensation.
If the will is silent on whether a gift to the named executor is intended as compensation, the executor is generally entitled to both the gift and reasonable compensation for their work as executor. Ontario courts have addressed this issue in various cases, and the interpretation depends on the specific wording used.
Executors who are also beneficiaries should review the will carefully — preferably with an estate lawyer — before assuming they can claim both. If the will's intent is unclear, the safest approach is to seek agreement from the beneficiaries or, if necessary, a court ruling on the question before taking compensation.
Key takeaways
- Some wills state a gift to the executor is in lieu of compensation — read the will carefully.
- If the will is silent, an executor can generally claim both a gift and separate compensation.
- Will wording is the key — ambiguous language should be clarified with legal advice.
- Beneficiary agreement or a court ruling can resolve uncertainty before compensation is taken.