- Executors are entitled to a fair and reasonable allowance of not more than 5% of the gross aggregate value of the estate assets.
- Expense reimbursement is paid on top of remuneration, and a will that sets the allowance overrides the default rules.
- Compensation can be reviewed, and accounts can be passed through the court.
Administering an estate takes real time and effort, so many executors ask what they can charge. Beneficiaries often ask the same question from the other side, wondering whether the amount taken is fair.
British Columbia has a statutory ceiling, but the amount within it depends on the facts of each estate. This article explains the rules and the ways compensation can be reviewed. A lawyer can help you apply them to a specific estate.
This article covers the law of British Columbia.
The 5% ceiling
Executors and administrators are entitled to a fair and reasonable allowance of not more than 5% of the gross aggregate value of all estate assets, including capital and income. That figure is a maximum, not an automatic entitlement. The word "reasonable" matters.
The amount is fixed by the Supreme Court, or by a registrar if the court directs. There is no set fee within the ceiling that applies to every estate.
Expenses and other fees
Remuneration is paid on top of reimbursement for expenses actually incurred. Keep expenses separate from your own compensation so each is easy to explain.
The Trustee Act also deals with other fees for trustees, but whether any of them applies to you as an executor depends on your situation, so it is worth confirming with a lawyer before you take any fee beyond the allowance.
| Item | Rule |
|---|---|
| Executor allowance | Fair and reasonable, not more than 5% of gross aggregate value |
| Expenses | Reimbursed on top of the allowance |
When the will sets the fee
Sections 88 and 89 of the Trustee Act do not apply where the will or other trust instrument sets the allowance. If the will names a fee or a method for working it out, that wording is what you look at first.
How this applies depends on your situation, so the amount of pay a personal representative can expect is worth confirming with a lawyer. Unless the will or other trust instrument sets the allowance, executors and administrators are entitled to a fair and reasonable allowance of not more than 5% of the gross aggregate value of all estate assets, fixed by the Supreme Court or by a registrar if the court directs. Get advice before taking a figure you are unsure about.
How beneficiaries can challenge compensation
A personal representative, or anyone interested in an estate, may apply for an order passing the representative's accounts or fixing their remuneration. The application is brought under Rule 25-14, or under Rule 8-3 if all other interested persons consent.
On a passing of accounts, the Form P40 statement of account must set out the estate's assets and liabilities, capital and income transactions, distributions and how remuneration was calculated. The court may refer the accounting to a registrar, who certifies the result in Form P39.
A registrar's order or certificate fixing compensation can be reviewed by the court if an application is made within 14 clear days after it is entered or filed. Unless varied, it binds the executor or administrator.
Executors must prepare accounts showing the estate's assets, receipts, disbursements and distribution, and have them approved by the court or by the people receiving the assets. The Trustee Act also sets a timeline: an executor under a will must obtain an order passing their first accounts within 2 years from the grant of probate, and if a beneficiary serves notice requiring it, accounts must then be passed each year within one month of the anniversary. That requirement does not apply if all beneficiaries approve the accounts in writing. Confirm with a lawyer how this applies to a particular estate.
What to do next
- Read the will to see whether it sets the executor's fee
- Keep a log of the work done and the time spent
- Keep every receipt for expenses, separate from your compensation
- As a beneficiary, ask for accounts before you agree to anything
- If you cannot agree, ask a lawyer about passing accounts or having the court fix the remuneration
Talking openly with beneficiaries early, and getting their written approval of the accounts, can avoid a court application.
Frequently asked questions
Is 5% what every executor gets?
No. The law sets a fair and reasonable allowance of not more than 5% of the gross aggregate value of the estate assets. The allowance is fixed by the Supreme Court, or by a registrar if the court directs, so the actual amount is not simply a set percentage.
Can an executor be paid and also reimbursed for expenses?
Yes. Remuneration is paid on top of reimbursement for expenses actually incurred. Good records of those expenses make approval much easier.
What if the will says how much the executor is paid?
Where the will or other trust instrument sets the allowance, sections 88 and 89 of the Trustee Act do not apply. The will's terms are the starting point.
How long do I have to challenge a registrar's decision on compensation?
A registrar's order or certificate fixing compensation can be reviewed by the court if an application is made within 14 clear days after it is entered or filed. Because the deadline is short, speak to a lawyer quickly.
Sources
- Trustee Act, s. 88(1) — bclaws.gov.bc.ca
- Supreme Court Civil Rules, Rule 25-13 — bclaws.gov.bc.ca
- Government of BC – After a death: wills and estates — www2.gov.bc.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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