What is a 'passing of accounts' for an estate in Ontario?
A passing of accounts is a formal court process in Ontario through which an estate trustee (executor) presents their full financial accounting of the estate for judicial review. The Superior Court of Justice reviews all receipts, disbursements, and the proposed executor compensation to confirm that the estate was managed properly.
An executor can apply voluntarily for a passing of accounts to protect themselves — once the court approves the accounts, beneficiaries generally cannot later sue the executor for those matters. Beneficiaries can also apply to court to compel a reluctant executor to pass their accounts.
Before the court hearing, the executor files a formal Statement of Account showing all transactions. Beneficiaries receive notice and have the opportunity to object to specific items. A court officer (often a registrar) may review the accounts first before a judge decides any contested items. The court can also review and adjust the executor's compensation at this stage.
For small, straightforward estates where all beneficiaries agree, a formal passing of accounts is rarely necessary. An informal accounting provided to beneficiaries, followed by signed releases, is often sufficient.
Key takeaways
- A passing of accounts is a court process to formally approve an executor's financial administration.
- It protects the executor from later claims about those matters.
- Beneficiaries can compel a passing of accounts if the executor fails to provide adequate information.
- Court approval of accounts and releases are two different — but both effective — ways to protect the executor.