Informal vs. Formal Passing of Accounts in Ontario: Which Route Should an Executor Take?

Every estate trustee eventually has to account for what they did with the estate's money — what came in, what went out, and what's left to distribute. In Ontario, that accounting can happen two very different ways: an informal passing of accounts, worked out directly with beneficiaries, or a formal passing of accounts, conducted before the Superior Court of Justice. Choosing the right one can save an estate significant time and expense — or, chosen wrong, invite unnecessary conflict.

What "Passing of Accounts" Means

Passing of accounts is the process of presenting a full record of an estate's administration — assets collected, debts and taxes paid, distributions made, and compensation claimed — so it can be reviewed and approved. The goal is the same either way: giving beneficiaries, and in the formal route the court, confidence that the estate trustee handled things properly.

Informal Passing: How It Works

An informal passing generally means the estate trustee prepares a clear summary or full set of accounts and asks each capable, adult beneficiary to review and sign off, often alongside a release confirming they won't later sue the trustee over the administration.

Advantages:

• Generally faster and less expensive than going to court
• Keeps the process private, without a public court record
• Works well where beneficiaries trust the trustee and have no major concerns

Limitations:

• Requires the genuine, informed consent of every capable, adult beneficiary
• Doesn't work where a beneficiary is a minor, is mentally incapable, or is represented by the Office of the Public Guardian and Trustee
• Offers less protection to the trustee than a court order, since a release can sometimes be challenged later

Formal Passing: How It Works

A formal passing of accounts is a court application in the Superior Court of Justice, governed by Ontario's Rules of Civil Procedure. The estate trustee files detailed accounts, beneficiaries and other interested parties are entitled to review them and raise objections, and a judge ultimately reviews and approves — or adjusts — the administration and any compensation claimed.

Advantages:

• Produces a binding court order that provides strong legal protection for the trustee
• Works even where beneficiaries include minors or incapable persons, or where consent can't practically be obtained
• Gives beneficiaries a neutral forum to raise concerns if they don't trust an informal process

Limitations:

• Takes considerably longer and costs more than an informal passing
• Becomes part of the public court record
• Can become adversarial if beneficiaries file substantive objections

Comparing the Two Routes

Which Route Should You Take?

An informal passing tends to make sense where the estate is straightforward, the beneficiaries are all capable adults, and there's no significant dispute or distrust. A formal passing becomes necessary — or simply wiser — where any beneficiary is a minor or incapable person, where beneficiaries disagree with the administration or compensation claimed, or where the estate trustee wants the strongest possible legal protection before making final distributions.

It's also possible to start informally and shift to a formal process if beneficiaries don't cooperate or a dispute emerges partway through.

Frequently asked questions