How to Pass an Estate's Accounts in Ontario: Steps, Forms and Deadlines

Passing accounts is the formal process in which an estate trustee shows the court everything that came into the estate, everything that went out, and what compensation is being claimed. It gives beneficiaries a chance to ask questions and the trustee a court-approved record of how the estate was handled.

This guide walks through the steps in the Superior Court of Justice: when passing accounts is needed, what the accounts must contain, what to file, who must be served and by when, and how objections and costs work. Every estate is different, so a lawyer can confirm how this applies to yours.

When do accounts have to be passed?

Ontario has no statutory requirement to pass accounts at fixed intervals, and an estate trustee may choose not to pass accounts unless the court compels it. 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.

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

Many trustees choose to pass accounts voluntarily, for example to have their compensation approved or to get court confirmation of their work. Whether that makes sense depends on the estate and the beneficiaries.

Records and what the accounts must contain

Estate trustees must keep accurate records of the assets and transactions in the estate. Good records are what make the accounts possible, so keep statements, receipts and cheque records from the start.

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
• 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
• anything else the court requires

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.

Filing and serving the application

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).

The notice of application and a draft judgment must be served on every person with a contingent or vested interest in the estate at least 60 days before the hearing date if served in Ontario. If documents are served outside Ontario, they must be served at least 75 days before the hearing date.

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, unopposed passings and costs

A beneficiary who objects must serve and file a notice of objection to accounts (Form 74.45) at least 35 days before the hearing date. 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. At least five days before the hearing date the applicant files a record with proof of service, an affidavit (Form 74.47) that the time for objections has expired, any costs requests, and a draft judgment in duplicate. In the Toronto Region, an unopposed passing may proceed in writing once that material is filed. Other regions may do things differently.

Costs on a passing of accounts are assessed under Tariff C. A party seeking more must serve a request for increased costs (Form 74.49.2 or 74.49.3) with a costs outline (Form 57B) at least 15 days before the hearing.

What the judge can do, and next steps

On a passing of accounts, 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. When passing accounts, the judge may also allow a fair and reasonable allowance for the care, pains, trouble and time spent on the estate. The judgment declares the accounts passed and orders fair and reasonable compensation paid to the estate trustee out of the estate.

If the will fixes the trustee's allowance, the Trustee Act rule on a fair and reasonable allowance does not apply. A lawyer can explain how compensation is likely to be viewed in your estate.

• Gather bank, investment and property records from the date of death onward
• Prepare the accounts with all the required parts
• Confirm who has an interest, including any person represented by the Public Guardian and Trustee or the Children's Lawyer
• Calendar the service and objection deadlines from the hearing date
• Talk to a lawyer before filing, especially if a beneficiary is likely to object

Frequently asked questions