How Is Executor Compensation Calculated in Ontario, Including Care and Management?

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. In plain terms, compensation is a question of what is fair for the work involved.

Compensation can be settled even when the estate is not before the court in an action, and a judge passing the estate trustee's accounts may allow a fair and reasonable allowance. Because the amount depends on the work done and the facts of the estate, any percentage or worked example should be confirmed with a lawyer or accountant rather than assumed.

Whatever the amount, you need records. Estate trustees must keep accurate records of the estate's assets and transactions, and a first passing includes a statement of assets at the date of death with accounts of all money received and disbursed. Beneficiaries get notice and can object to the accounts or the compensation claimed; if no objection arrives once the period expires, judgment can be given unopposed. A lawyer who is the trustee may receive an increased allowance for necessary professional services.