Why should an executor get a release from beneficiaries before distributing the estate in Ontario?

A release (sometimes called a receipt and release) is a document signed by a beneficiary when they receive their share of the estate. In it, the beneficiary confirms they received the distribution and releases the executor from any further claims related to the administration of the estate.

Releases protect the executor. Once a beneficiary signs a release, they generally cannot later claim the executor mismanaged the estate or owes them more money, unless the release was obtained by fraud or misrepresentation. This is especially valuable when the executor has exercised discretion — such as on investment decisions or how an asset was valued.

An executor should provide beneficiaries with an accounting of the estate before asking for a release, so beneficiaries can make an informed decision about whether to sign. An executor who asks for a release without providing meaningful information about the estate's affairs may have difficulty enforcing it.

If any beneficiary refuses to sign a release, the executor can apply to the court for a formal passing of accounts, which provides equivalent judicial protection once the court approves the accounts.