- Being named a beneficiary does not by itself make you the estate trustee; the estate trustee is the person who carries out the will and winds up the estate.
- An estate trustee who distributes assets before getting a CRA clearance certificate can be personally liable for unpaid amounts.
- A person with a financial interest in an estate can ask the court to require the estate trustee to pass accounts.
If you have been told you are a beneficiary, you may wonder whether that also puts you in charge. Usually it does not. The estate trustee is the person who handles the work, and a beneficiary is the person who is entitled to receive a share.
The two roles can belong to the same person, which is why they get mixed up. This article compares them side by side so you can see what each one does and what each can expect.
The short answer
Estate trustees carry out the wishes set out in the will. Their duties include winding up the deceased's affairs and paying taxes, bills and other debts, after which the estate is distributed according to the will. A beneficiary receives what the will gives them. Unless the will also names you as estate trustee, you are not the one making decisions.
Many families name one person, often a spouse or child, to do both jobs. If that is you, you carry the duties of the estate trustee as well as the rights of a beneficiary.
Side-by-side comparison
| Topic | Beneficiary | Estate trustee |
|---|---|---|
| Main job | Receives the share the will provides | Carries out the will, winds up affairs, pays taxes and debts, then distributes |
| Probate notice | Entitled to a copy of the application before it is filed | Must send or give that copy to everyone entitled to a share |
| Accounts | May ask the court for an order that accounts be passed, if they have a financial interest | Can be required to pass accounts; the trustee may get judgment without a hearing if no objection is filed |
| Tax | Most inheritances are not reported or taxed | Reports the deceased's gains on the final return, not the beneficiary |
What the estate trustee has to watch
- Timing: estates are still presumed to be wrapped up within one year of death, often called the executor's year. For complex estates, the court accepts that this expectation may be unreasonable.
- Final tax return: for a death between January 1 and October 31, the return is due April 30 of the following year, and for a death between November 1 and December 31 it is due six months after death. If the deceased or their spouse or common-law partner carried on a business, the due date is June 15 of the year after death for deaths from January 1 to December 15, though any balance owing is still due by the normal payment date.
- Clearance certificate: a legal representative who distributes assets before getting a CRA clearance certificate (Form TX19) is personally liable for unpaid amounts, up to the value of what was distributed.
- Estate Administration Tax: for applications on or after January 1, 2020, no tax is payable on estates of $50,000 or less, and above that the tax is $15 for every $1,000 or part of that value. The estate pays it, not the beneficiaries or the representative. If no probate certificate is applied for and issued, none is due.
- Estate Information Return: it must be filed within 180 calendar days after the certificate is issued, even if the value is $0, and an amended return is generally due within 60 calendar days if new assets are found.
What a beneficiary can expect and ask for
A beneficiary is not just a bystander. You are entitled to notice of the probate application before it is filed, and you can ask the court to require accounts. If the estate trustee applies to pass accounts, objections must be served at least 35 days before the hearing, and the court decides only the issues raised in filed objections.
If the estate earns income and allocates it to you, it is reported on a T3 slip and generally included in your income. If you are a non-resident beneficiary, the amount is reported on an NR4 slip instead.
If you are a married spouse and the deceased left a will, you must choose between taking under the will and receiving the equalization entitlement. The election must be filed with the Estate Registrar for Ontario within six months after the death. If you do not file in time, you are deemed to have chosen to take under the will or under the Succession Law Reform Act, unless the court orders otherwise. No distribution may generally be made from the estate within six months of death unless the surviving spouse consents in writing or the court authorizes it. This election applies to married spouses, not common-law partners.
What to do next
- Read the will to see who is named as estate trustee and who receives what.
- If you are the estate trustee, keep a record of every receipt, payment and decision.
- If you are a beneficiary, ask for updates in writing and keep copies.
- Diarize the six-month spousal election date if it applies to you.
- Get legal advice before distributing anything, or before objecting, as timing and tax clearance can affect personal liability.
Frequently asked questions
Does being a beneficiary make me the executor?
No. The estate trustee, often called the executor, is the person appointed to carry out the will and wind up the estate. One person can be both a beneficiary and the estate trustee, but how that applies to you depends on the will and your situation, so it is worth confirming with a lawyer.
How long does an estate trustee have to finish?
Estates are still presumed to be wrapped up within one year of death. For complex estates, the court accepts that this may be unreasonable.
Can a beneficiary make the estate trustee show the accounts?
A person who appears to have a financial interest in the estate may ask the court for an order requiring the estate trustee to pass accounts. Whether an order is made depends on the circumstances.
Is the estate trustee personally responsible for the deceased's taxes?
A legal representative who distributes assets before getting a CRA clearance certificate is personally liable for unpaid amounts, up to the value of the assets distributed. That is why many estate trustees wait before making final distributions.
Sources
- Ontario.ca – Apply for probate of an estate — ontario.ca
- Ontario Court Forms – Rule 74.15 — ontariocourtforms.on.ca
- Ontario Court Forms – Form 74.44 Notice of Application to Pass Accounts — ontariocourtforms.on.ca
- Ontario.ca – Administering estates — ontario.ca
- Rivard v. Morris, 2018 ONCA 181 — ontariocourts.ca
- Canada.ca – Apply for a clearance certificate — canada.ca
- Family Law Act, R.S.O. 1990, c. F.3 (CanLII) — canlii.org
- Canada.ca – Amounts that are not reported or taxed — canada.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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