Can an executor carry on the deceased's business in Ontario?

An executor does not automatically have the power to carry on the deceased's business beyond what is reasonably necessary to wind it down or sell it. Operating a business exposes the estate to risks and liabilities that can erode its value, and an executor who carries on a business without authority can be personally liable for losses that result.

The will may expressly grant the executor power to carry on a business for a period — this is a standard provision in wills where the deceased owned a business, and it provides both the authority and the protection the executor needs. Without such authority in the will, the executor should generally seek to sell, wind down, or transfer the business as quickly as reasonably possible.

In some cases, particularly where a corporation is involved, the shares of the corporation (not the underlying business) are part of the estate. The executor holds the shares and can exercise shareholder rights, but the corporation itself continues with its own management structure. This is a significant distinction — the executor is not personally running the business, just overseeing the estate's ownership interest.