- Estate trustees must keep accurate records of the estate's assets and transactions, and first accounts must include a statement of assets at the date of death and all money received and paid out.
- Notice goes to beneficiaries and other interested persons, and judgment can be given unopposed if the objection period passes with no objection to the accounts or compensation.
- A judge passing the accounts can allow fair and reasonable compensation, and the court may relieve a trustee who acted honestly and reasonably.
Passing accounts is the court process where an estate trustee (the executor) shows what came into the estate, what went out, and what is left. It gives beneficiaries a clear picture and can give the trustee a court-approved record of how the estate was handled.
This guide walks through the steps in plain language: the records you need, what the accounts contain, who gets notice, how compensation and expenses fit in, and where the court can help a trustee who made an honest mistake. It does not cover how a beneficiary demands an accounting, or whether a trustee can pay themselves before the accounts are passed.
Start with good records
Estate trustees must keep accurate records of the estate's assets and transactions. Good records are what make a passing of accounts manageable, so start from the first day of the administration.
- Keep bank statements and records for every estate account.
- Keep receipts and invoices for every expense you pay.
- Note the value of each asset at the date of death.
- Record every amount received, such as refunds, income or sale proceeds.
- Record every payment made, including to creditors and beneficiaries.
What the first accounts must include
On a first passing, the accounts filed with the court must include a statement of assets at the date of death, together with accounts of all money received and disbursed. In other words, the accounts start with what the estate held at death and then show every dollar in and out.
Notice, the affidavit and objections
On a passing of accounts, notice goes to the beneficiaries and other interested persons, and the estate trustee swears an affidavit verifying the accounts. The affidavit is your sworn statement that the accounts are accurate, so check the figures carefully before you sign.
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 someone does object, the matter may need further steps, and legal advice is worthwhile.
If a beneficiary is a minor, the Office of the Children's Lawyer must be served with an application to pass estate accounts under rule 74.18(3). It should also be served where the estate has an unborn or unascertained interest.
Compensation and expenses
An estate trustee is entitled to a fair and reasonable allowance for their care, pains, trouble and time spent on the estate, as allowed by a judge of the Superior Court of Justice. A judge passing the estate trustee's accounts may allow a fair and reasonable allowance.
Where a solicitor-trustee has provided necessary professional services to the estate, the allowance is increased by an amount considered fair and reasonable for those services.
Expenses are separate from compensation. If a trustee is of the opinion that an expense would be properly incurred in carrying out the trust, the trustee may pay it directly from the trust property, or pay it personally and then recover it from the trust property. Keep receipts so these expenses can be shown in the accounts.
| Item | What the law says |
|---|---|
| Compensation | Fair and reasonable allowance, as allowed by a judge |
| Solicitor-trustee | Allowance increased for necessary professional services |
| Expenses | Paid from the trust property, or paid personally and recovered |
When the court can relieve a trustee
Mistakes can happen. The court may relieve a trustee who is personally liable for a breach of trust, wholly or partly, if the trustee acted honestly and reasonably and ought fairly to be excused for the breach and for not obtaining the court's directions.
Similar relief can be granted to a personal representative who overpays a creditor or claimant, if they acted honestly and reasonably to protect or conserve the estate's assets. Relief is not automatic, so careful records and getting directions when in doubt both help.
What to do next
Rule and form numbers can change over time, so check the current Rules of Civil Procedure and the current court forms before you prepare anything. Estate trustees must keep accurate records of the estate's assets and transactions, and a first passing of accounts must include a statement of assets at the date of death along with accounts of all money received and disbursed.
- Gather the records and confirm the date-of-death asset values.
- Prepare accounts of all money received and paid out.
- Identify every beneficiary and interested person who needs notice, including any minor, unborn or unascertained beneficiaries.
- Check the current rules and forms.
- Get legal advice before filing, especially if compensation is claimed or someone may object.
Frequently asked questions
Do I have to pass accounts in court?
Whether you must depends on the facts, such as whether beneficiaries agree and whether anyone is a minor or unborn. Keeping accurate records is required either way. A lawyer can tell you if a passing is advisable.
What happens if nobody objects?
Judgment can be given unopposed once the objection period has expired and no notice of objection to the accounts or the compensation claimed has been received.
Who decides how much an executor is paid?
A judge of the Superior Court of Justice allows a fair and reasonable allowance for the trustee's care, pains, trouble and time. This can be done when the judge passes the accounts.
Can I be excused if I made an honest error?
The court may relieve a trustee wholly or partly if the trustee acted honestly and reasonably and ought fairly to be excused. It depends on the facts, so get legal advice early.
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
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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