How Much Can an Executor Be Paid in Ontario? Fees and Review

Being an executor (the law calls the role an estate trustee) is real work. You may collect assets, pay debts, deal with tax and keep records for months or years. It is natural to ask what you are allowed to be paid. If you are a beneficiary, you may be asking the same question from the other side: is the amount being claimed fair?

Ontario does not set one flat fee for executors. There is a legal test, a body of court practice, and some rules about timing. This article explains how those pieces fit together so you know what questions to ask.

The legal test: a fair and reasonable allowance

Under the Trustee Act, a trustee or personal representative is entitled to a fair and reasonable allowance for their care, pains and trouble and the time spent on the estate. The amount is the one allowed by a judge of the Superior Court of Justice.

The judge may fix the allowance when the accounts are passed. Passing accounts is the formal court process where the trustee shows what came in, what went out and what is left. It is the usual moment when compensation is examined.

Notice what the test looks at: the work actually done and the time actually spent. It is not simply a share of the estate that is owed automatically. A straightforward estate with little to do may justify less than a complicated one with a business, a dispute or years of administration.

What about the percentage guidelines?

You will often hear people quote a percentage of the estate's value as the usual executor fee. That figure is a rule of thumb rather than a rule of law, and how it is worked out can vary, so it is worth confirming with a lawyer or accountant how it would apply to your estate. It is not a percentage written into the Trustee Act, and a judge still decides what is fair for the particular estate.

So treat any quoted percentage as a starting point for discussion, not a guaranteed entitlement or a cap. A lawyer or accountant can tell you how the courts are currently applying these guidelines to an estate like yours.

When the will or a lawyer changes the picture

• If the will or trust document fixes the allowance, section 61 of the Trustee Act does not apply, and the document's own terms govern.
• If the trustee is a barrister or solicitor who provides necessary professional services to the estate, the allowance may be increased accordingly.
• If the will says nothing about pay, the fair and reasonable allowance test applies.

Reading the exact wording of the will matters. A clause that sets pay, or that allows payment in advance, can change the answer completely.

Taking pay before the accounts are passed

Many executors want to pay themselves along the way rather than wait for the end. An estate trustee may take compensation before accounts are passed only in three cases.

Taking money without one of these in place can create problems later, because the trustee may be asked to account for it. If you are an executor, keep a written record of the work you do, the dates and the time spent. Written consents from beneficiaries should be clear about what they are agreeing to.

If you are a beneficiary with concerns

A person with a financial interest in the estate, such as a beneficiary, may ask the court for orders for assistance. These include orders requiring the estate trustee to file a statement of estate assets, give further particulars, or pass accounts.

When accounts are passed, the trustee must file the verified estate accounts (Form 74.43), a copy of the certificate of appointment and a copy of the latest judgment, if there is one. Compensation is then reviewed alongside the rest of the accounts.

Removing a trustee is a different and much more serious step. The Superior Court of Justice may remove a personal representative on any ground on which it may remove any other trustee. The Court of Appeal for Ontario has said that removing trustees the deceased specifically chose is a serious matter, because it intrudes on the deceased's intention. A fee disagreement alone is usually better raised through accounts.

What to do next

• Read the will for any clause about compensation or payment in advance.
• If you are the executor, keep a running log of tasks and hours and save receipts.
• Before paying yourself, confirm that one of the three permitted routes applies.
• If you are a beneficiary, ask for a clear written summary of assets, debts and payments so far.
• If you cannot agree, speak with an Ontario estates lawyer about passing accounts before taking any formal step.

Frequently asked questions