How Much Can an Executor Be Paid in Saskatchewan Estates?

Being an executor is real work, and many people ask whether they are entitled to be paid for it. They also worry about how much is reasonable and whether the other beneficiaries can object.

This article explains what the Saskatchewan guidance says about executor fees and expenses, how accounts are reviewed, and what to raise with an accountant. The exact amount that is fair depends on the estate and the work done, so it is worth confirming with a lawyer.

This article covers the law of Saskatchewan.

What an executor actually does

The province lists the executor's common duties. They include finding the will, getting the death certificate, securing and valuing assets, paying funeral bills, applying for Letters if required, publishing a Notice to Creditors, paying debts by priority, filing returns, obtaining a CRA Final Clearance Certificate and accounting to beneficiaries within two years.

The amount of work in that list is one reason compensation is a common topic. A simple estate and a complicated one with land, business interests or disputes can involve very different effort.

Some of the work depends on what the estate holds. The Court of King's Bench says the only asset that absolutely requires probate is an interest in land registered solely in the deceased's name, and for other financial assets the institution decides whether it needs Letters, so the first step is to ask the institution. Land held in joint tenancy with survivorship, bank accounts with survivorship, life insurance with a named beneficiary, and RRSPs or RRIFs with a named beneficiary pass outside probate.

Fees, expenses and where they rank

Executor fees and out-of-pocket expenses are not the same thing. The executor's disbursements and out-of-pocket expenses are paid by the estate, and the court can review them.

If an estate is insolvent, debts are paid in a set order. Costs of administration, including executor fees, rank third, after secured creditors and reasonable funeral and testamentary expenses.

For an insolvent estate, the province recommends consulting a lawyer and, if needed, applying to the court for directions.

How much is reasonable, and how the court reviews it

There is no single figure to quote here. How much is fair depends on the facts of the estate and the work involved, so it is worth confirming with a lawyer. A lawyer can tell you how courts have approached it and whether the will itself sets payment.

Review happens through accounting. The executor must account to beneficiaries within 2 years, or pass accounts at the court house if the accounts are disputed. Beneficiaries can give releases, or the executor can obtain a court order passing the accounts and distributing the estate.

• Keep a dated record of the time you spend and what you did.
• Keep receipts for every expense paid from the estate.
• Keep estate money in a separate estate account.
• Tell beneficiaries early if you plan to take payment, so there are fewer surprises at accounting.

Tax points for executors

Whether compensation is taxable to the executor, and how it is reported, is a question for an accountant, since it depends on the facts. What the executor must handle for the estate itself is clearer.

The final income tax return is due April 30 of the following year for a death between January 1 and October 31, or six months after death for a death between November 1 and December 31. If the deceased or their spouse ran a business, the filing date may instead be June 15 of the following year for a death between January 1 and December 15, but payment is still due on the regular date.

For the usual filing dates, the payment due date is the same, and late filing with a balance owing attracts 5% plus 1% per full month up to 12 months.

Income the estate earns after death is reported on a T3 trust return. If an executor distributes assets before getting a CRA clearance certificate and tax is still owing, they can be personally liable up to the value distributed.

What to do next

• Read the will for any statement about payment to the executor.
• Start a time log and expense record now.
• Open an estate account and keep personal funds separate.
• Ask an accountant how compensation should be reported.
• Speak with a lawyer before paying yourself if beneficiaries object or the estate may be insolvent.

Frequently asked questions