What's the difference between an informal accounting and a court-supervised passing of accounts in Ontario?

An informal accounting is simply the estate trustee sharing a summary of the estate's finances directly with beneficiaries, outside of court, usually along with a release for beneficiaries to sign confirming they accept the numbers. It's faster and cheaper than going to court, and it works well when everyone trusts the trustee and the estate is straightforward.

A formal passing of accounts is a court-supervised process instead: the trustee files a detailed accounting with the Superior Court, every interested party gets formal notice and a chance to object, and a judge ultimately reviews and approves the accounts, and the trustee's compensation, rather than relying on beneficiaries simply signing off. It provides real protection the informal route doesn't — a court-approved passing gives the trustee a much stronger shield against a beneficiary later trying to reopen the same accounting.

The key practical difference is leverage: an informal release only binds beneficiaries who actually sign it, so if even one beneficiary won't agree, or is a minor or otherwise unable to give a binding release, the informal route may not be enough to fully protect the trustee, and a formal passing becomes the more reliable option.