How Much Can an Executor Charge for Expenses and Out-of-Pocket Costs in Ontario?

Yes, an executor can be repaid for proper estate costs they pay out of their own pocket. Under the Trustee Act, if a trustee is of the opinion that an expense would be properly incurred in carrying out the trust, the trustee may pay it directly from the trust property, or pay it personally and then recover it from the trust property.

Reimbursement is not the same as compensation. An estate trustee is entitled to a fair and reasonable allowance for their care, pains, trouble and time spent on the estate, as allowed by a judge of the Superior Court of Justice. A lawyer who is also the trustee may receive an increased allowance for necessary professional services to the estate.

Documentation is your protection. Estate trustees must keep accurate records of the estate's assets and transactions, and accounts filed with the court include all money received and disbursed. Beneficiaries receive notice of a passing of accounts and can object to the accounts or the compensation claimed. Funeral and burial expenses and debts are paid before the estate is distributed under a will. Whether a travel or other cost is properly incurred depends on the facts, so keep every receipt and confirm with a lawyer.