- Alberta personal representatives may receive fair and reasonable compensation for their responsibility in administering an estate.
- The Surrogate Rules list factors for compensation, such as the size of the estate, complexity, time spent and skill, but set no percentage.
- Compensation is usually reviewed when the accounts are passed, and the court may set the amount and give directions about it.
If you are a beneficiary, an executor's pay can feel hard to judge from the outside. If you are the executor, you may want to know how to show that what you took reflects the work you did.
In Alberta, the person who administers an estate is called a personal representative. The Surrogate Rules set out how their compensation is assessed and when a court can step in. This article walks through those factors in plain terms.
This article covers the law of Alberta.
The starting point: fair and reasonable compensation
Personal representatives may receive fair and reasonable compensation for their responsibility in administering an estate. Compensation for the care and management of property applies only if there is no outright distribution at death and the trust is not varied by agreement of the affected beneficiaries or by the court.
Alberta's rules do not set a percentage of the estate. The Schedule sets out factors instead, so the answer depends on the facts of each estate.
The factors a court looks at
The Surrogate Rules list the following factors for compensation:
- The gross value of the estate.
- The amount of revenue receipts and disbursements.
- The complexity of the work, and whether difficult or unusual questions arose.
- Skill, labour, responsibility, technological support and specialized knowledge.
- Time spent.
- The number and complexity of tasks delegated.
- The number of personal representatives named in the will.
Additional compensation may be allowed when the representative takes on extra roles, such as acting as a company director, faces unusual difficulties, or must instruct on litigation.
Limits that can reduce or cap the amount
| Situation | What the rules say |
|---|---|
| The will fixes the compensation | No greater amount can be charged or allowed unless the affected beneficiaries agree or the court orders otherwise. |
| A lawyer or other agent does some of the work | The representative's compensation must be reduced commensurately. |
| Several personal representatives | Compensation is shared as they agree or as the court orders. |
| Payment before the estate is finished | Allowed only if the will provides for it, all affected beneficiaries agree, or the court orders it. |
If the court later reduces compensation already paid, the representative must immediately repay the disallowed amount to the estate, with interest at a rate and for a period the court sets.
How the review happens
Compensation comes up when the accounts are passed. The financial statements must include a proposed compensation schedule. At the hearing, the court may pass the accounts, set the representative's compensation and give directions about it.
A beneficiary can start a formal passing by filing Forms ACC 6 and ACC 7 and serving notice one month ahead of the hearing. A person who objects to the financial statements must file Form ACC 3 and serve it 10 days or more before the hearing, identifying each objected entry by number. The court may also order a professional accounting firm to examine the entries.
What to do next
- Executors: keep a ledger, receipts and a record of the time you spend and the tasks you delegate.
- Executors: explain your proposed compensation in the compensation schedule and share the financial statements with beneficiaries.
- Beneficiaries: ask for the financial statements and review the compensation schedule against the factors above.
- Beneficiaries: if you disagree, note the specific entries and get advice on filing Form ACC 3 or starting a formal passing.
- Both: talk to a lawyer before taking or contesting payment, since the outcome depends on the facts.
Frequently asked questions
Is there a set percentage an executor can take in Alberta?
The Schedule to the Surrogate Rules sets no percentage. It lists factors such as the value of the estate, complexity, time spent and skill instead.
Can an executor pay themselves before the estate is finished?
Only if the will provides for it, all affected beneficiaries agree, or the court orders it. If the court later reduces what was paid, the representative must repay the disallowed amount to the estate, with interest set by the court.
What if the will already sets the executor's pay?
No greater amount can be charged or allowed unless the affected beneficiaries agree or the court orders otherwise.
Can a beneficiary make the executor account?
A beneficiary can apply for an order requiring an accounting at any time. A beneficiary of only a specific gift can obtain an accounting only for that gift, and one who has already received it cannot apply under that rule.
Sources
- Estate Administration Act, Schedule — kings-printer.alberta.ca
- Surrogate Rules, Alta Reg 130/1995 — kings-printer.alberta.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
This is a wills & estates question
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