- Estate trustees must keep accurate records of the estate's assets and transactions.
- On a first passing, accounts filed with the court must include a statement of assets at the date of death and accounts of all money received and disbursed.
- Beneficiaries get notice, and they can object to the accounts or the compensation claimed.
If you are an executor, you may need to show the court, or the beneficiaries, exactly what you did with the estate's money. Formal accounts do that. Good records kept from the start make the work far easier.
This article covers what Ontario's Rules of Civil Procedure say the accounts must include and how a passing of accounts works. The exact layout of the court forms is something to take from the current forms or from a lawyer, because the forms have changed over time.
Why records matter from day one
Estate trustees must keep accurate records of the estate's assets and transactions. Keep statements, receipts, invoices and a running list of every payment in and out. Records kept as you go are much easier to turn into accounts than records rebuilt from memory.
What the accounts must contain
Under rule 74.17, accounts filed with the court must include, on a first passing, a statement of assets at the date of death, together with accounts of all money received and disbursed.
| Part of the accounts | What it covers |
|---|---|
| Assets at date of death | A statement of what the deceased owned at death. |
| Receipts | All money the estate received. |
| Disbursements | All money the estate paid out. |
| Compensation | Any allowance claimed for the trustee's care, pains, trouble and time. |
Assets that pass outside the estate, such as jointly owned property that automatically goes to the survivor, are treated differently for Estate Administration Tax purposes. Whether they belong in your accounts depends on the facts, so ask a lawyer.
Expenses and compensation
If a trustee believes an expense is properly incurred in carrying out the trust, the trustee may pay it from the trust property, or pay it personally and then recover it from the trust property. Record these clearly and keep the receipts.
An estate trustee is entitled to a fair and reasonable allowance for their care, pains, trouble and time, as allowed by a judge of the Superior Court of Justice. A judge passing the accounts may allow that allowance. Where the executor is a lawyer who provided necessary professional services, the allowance is increased by a fair and reasonable amount for those services.
How a passing of accounts works
Notice goes to beneficiaries and other interested persons, and the estate trustee swears an affidavit verifying the accounts. Judgment can be given unopposed once the objection period has expired and no notice of objection to the accounts or to the compensation claimed has been received.
If a beneficiary is a minor, or there is an unborn or unascertained interest, the Office of the Children's Lawyer must be served with the application to pass accounts, or should be served.
What to do next
- Gather bank statements, receipts and a date-of-death list of assets.
- Sort every payment received and paid into clear categories.
- Note any expenses you paid personally and any compensation you plan to claim.
- Before distributing, remember the CRA clearance certificate requirement.
- Ask a lawyer for the current court forms and layout before filing.
Frequently asked questions
Do I always have to pass my accounts in court?
The facts here describe what accounts must include when they are filed with the court. Whether a passing is needed in your estate depends on the facts, such as the beneficiaries and whether everyone agrees, so confirm with a lawyer.
What must a first passing include?
On a first passing, accounts must include a statement of assets at the date of death and accounts of all money received and disbursed.
Can beneficiaries object to my compensation?
Yes. Judgment can be unopposed only once the objection period has expired and no notice of objection to the accounts or the compensation claimed has been received.
Who gets notice of the passing?
Notice goes to beneficiaries and other interested persons. The Office of the Children's Lawyer must also be served where a minor is involved, and should be where there is an unborn or unascertained interest.
Sources
- Trustee Act, R.S.O. 1990, c. T.23 (e-Laws) — Ontario e-Laws
- R.R.O. 1990, Reg. 194: Rules of Civil Procedure (e-Laws) — Ontario e-Laws
- Ontario.ca – The Office of the Children's Lawyer and estates and trusts matters — ontario.ca
- Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 159 — Justice Laws (federal)
- Ontario.ca – Estate Administration Tax — ontario.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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