How to Pass Estate Accounts in Ontario Court Step by Step

A passing of accounts is the formal court process in which an estate trustee's records are reviewed and approved. It protects beneficiaries, and it can protect the trustee too.

This article walks through when accounts are passed, what they must contain, the steps and timelines, and what happens if someone objects.

When accounts have to be passed

Ontario has no statutory requirement for estate trustees to pass accounts at fixed intervals. They may choose not to pass accounts unless the court compels them to. Apart from an inventory, an executor or administrator need not account to a court unless asked by or on behalf of a person interested in the property or a creditor of the deceased.

Any person who appears to have a financial interest in an estate may move for an order requiring the estate trustee to pass accounts. A person with a financial interest may also move for an order requiring the estate trustee to file a statement of the nature and value of the estate's assets at the date of death, and then for further particulars.

What the accounts must contain

Estate trustees must keep accurate records of the assets and transactions in the estate. Accounts filed with the court must include the following:

• On a first passing, a statement of assets at the date of death cross-referenced to entries showing their disposal (on later passings, assets at the start of the period).
• An account of all money received, and an account of all money disbursed, including the trustee's compensation and payments under court order.
• Investment transactions, unrealized assets at the closing date, and all money and investments at the closing date.
• All liabilities, contingent or otherwise.
• A statement of the compensation claimed and, for a value-based management fee, how the value was set.

The receipts, disbursements and investment accounts must each show the balance forward. Where the will or trust treats capital and income differently, receipts and disbursements must be divided into capital and income.

The steps and timelines

To apply, the estate trustee files the accounts verified by affidavit (Form 74.43), a copy of the certificate of appointment, and any latest judgment on a passing of accounts. The court then issues the notice of application (Form 74.44).

Where the Public Guardian and Trustee or the Children's Lawyer represents a person with an interest, they must also be served with the passing of accounts materials.

Objections, hearings and the outcome

No objection may be raised at the hearing unless it was raised in a notice of objection, unless the court orders otherwise. If no notices of objection are filed, or all are withdrawn, the court may grant judgment without a hearing. In the Toronto Region, an unopposed passing may proceed in writing once the required material is filed, and other regions may differ.

On a passing, the judge has power to inquire into any complaint or claim by any person interested, including misconduct or neglect causing loss, and may order payment to the estate. The judgment declares the accounts passed and orders fair and reasonable compensation paid to the estate trustee out of the estate. Costs are assessed under Tariff C.

Compensation matters here. The Court of Appeal for Ontario has held that a trustee may take compensation before passing accounts only with the agreement of all interested persons who are sui juris, with court approval, or where the will provides for it. If the court later approves a lower amount, it can order the difference repaid to the estate.

What to do next

• Keep complete, accurate records from the start.
• As trustee, organize your accounts in the form the rules require before you apply.
• As a beneficiary, diarize the objection deadline and ask a lawyer how to prepare a notice of objection.
• Do not pay yourself compensation early without agreement, court approval or authority in the will.
• Get legal advice early, especially if there is a dispute.

Frequently asked questions