Do executors have to give beneficiaries an accounting in British Columbia?
This answer covers the law of British Columbia.
Yes. BC government guidance says executors must prepare accounts showing the estate's assets, receipts, disbursements and distribution, and have them approved by the court or by the people receiving the assets. For an executor under a will, the Trustee Act requires an order passing the first accounts within 2 years from the grant of probate. That court requirement does not apply if all beneficiaries approve or consent to the accounts in writing.
On a passing of accounts, the Form P40 statement of account must set out the estate's assets and liabilities, capital and income transactions, distributions and how remuneration was calculated. The court may refer the accounting to a registrar, who certifies the result in Form P39. A beneficiary, or anyone interested in the estate, may apply for an order passing the representative's accounts or fixing their remuneration, under Rule 25-14, or under Rule 8-3 if all other interested persons consent.
If a beneficiary serves notice requiring it, accounts must then be passed each year within one month of the anniversary. Whether and how these rules apply depends on the estate and the will, so a lawyer can confirm.
Key takeaways
- Executors must prepare accounts and have them approved by the court or by the people receiving the assets.
- An executor under a will must obtain an order passing the first accounts within 2 years from the grant of probate, unless all beneficiaries approve the accounts in writing.
- A beneficiary or anyone interested in the estate may apply for an order passing the representative's accounts or fixing their remuneration.
- Executors may be paid a fair allowance of not more than 5% of the gross aggregate value of the estate assets, plus reimbursement for expenses, unless the will sets the allowance.