How to Object to an Executor's Estate Accounts in Alberta

You have received the financial statements from the personal representative (the executor or administrator) and something looks wrong. Perhaps an expense seems high, the compensation seems steep, or the proposed distribution does not match what you expected. You are not stuck with the numbers as presented.

This article explains what the statements should contain so you can spot gaps, how an objection works in Alberta, and what the court can do. Deadlines are short and the paperwork is specific, so it is worth getting legal advice early if the amounts are significant.

This article covers the law of Alberta.

What the financial statements must contain

A personal representative must account for the administration at regular intervals by preparing financial statements of property and money received, property distributed and money paid out, and giving them to the beneficiaries. The statements may be combined or separate and in any format. The court may also ask for more particulars.

Check the statements against this list. A missing item is often the first sign you have grounds to ask questions.

• An inventory at the beginning and the end of the period
• Statements of receipts and distributions, noting capital or income
• A statement of expenses
• A reconciliation
• A distribution schedule
• A proposed compensation schedule

Where the will or trust requires it, capital and income must be kept separate in the statements. Ownership of estate property is shown by documents such as certificates, bank or dealer letters, company letters and statements of account, and for land a current certified copy of the certificate of title.

Objecting to an informal passing: Form ACC 3

A personal representative may ask the court to dispense with a formal passing and pass the accounts informally. To do this they file Forms ACC 10 and ACC 11 and the financial statements, and serve copies on interested persons who have not given releases. The application may proceed without notice to others if no objection is filed or all residuary beneficiaries have released, and the court must still be satisfied with the documentation.

If you disagree, any interested person may object to an informal passing with Form ACC 3. That leads to a hearing under the formal passing rules.

The formal objection rules

If the accounts are going to a formal passing, the personal representative files Forms ACC 1 and ACC 2, the financial statements and any Form ACC 3 objection. They serve copies on interested persons who have not given releases, and the notice of hearing must be served one month or more before the hearing. A beneficiary can also start a formal passing by filing Forms ACC 6 and ACC 7 and serving notice one month ahead of the hearing.

To object to the statements, you must file Form ACC 3 and serve it 10 days or more before the hearing. You must give particulars and identify each objected entry by number. A person who does not do this may speak only with the court's permission, and is deemed to consent if they neither appear nor file an objection.

The court may set hearing dates and service periods despite the usual time limits, so confirm the dates in your own notice. When a beneficiary starts the process, the personal representative must reply in Form ACC 8 at least 10 days before the hearing, and may account, object or consent.

Releases and the limit for specific gifts

A personal representative may ask residuary beneficiaries to sign a release in Form ACC 12 confirming they are satisfied with the accounting, compensation and proposed distribution. A beneficiary who has signed a release need not be served. Because a release confirms that you are satisfied, do not sign until you are, and consider confirming with a lawyer what signing means in your situation. Releases need not be filed.

If you are a beneficiary of only a specific gift, your rights are narrower. You may obtain an accounting only for that gift, and if you have already received it, you cannot apply for an accounting at any time under r. 97(3).

What the court can do at the hearing

At the hearing the court may do any of the following:

• Pass the accounts, or vary or amend the financial statements
• Set the personal representative's compensation and give directions about it
• Decide disputes summarily and direct payment of debts
• Confirm the beneficiaries and the distribution

A personal representative may receive fair and reasonable compensation for their responsibility in administering an estate. The factors include the size of the estate, the complexity of the work, skill, responsibility, time spent and the number of personal representatives named in the will. The Schedule sets no percentage. If the will fixes the compensation, no greater amount can be charged unless the affected beneficiaries agree or the court orders otherwise.

A representative may be paid before completing the administration only if the will provides for it, all affected beneficiaries agree, or the court orders it. If the court later reduces compensation already paid, the representative must immediately repay the disallowed amount to the estate, with interest at a rate and for a period the court sets. Compensation must also be reduced if a lawyer or other agent performed some of the representative's duties.

The court may order a professional accounting firm to examine the entries. The representative and anyone holding estate records must make them available and cooperate, and the firm's fees are paid from the residue unless the court orders otherwise.

What to do next

• Note the hearing date and count back at least 10 days for serving Form ACC 3.
• Compare the statements to the list of required parts and write down what is missing.
• Number each entry you dispute and write your reasons clearly.
• Ask the personal representative for supporting records, such as statements and receipts.
• Do not sign a release until you are satisfied.
• Speak to a lawyer if the amounts or the compensation are significant.

If informal requests fail, a beneficiary may also ask the court to order a representative who has failed to perform a duty to do so, or in some cases to remove them.

Frequently asked questions