Passing Estate Accounts in Ontario: Court Steps, Deadlines and Objections

A passing of accounts is the court process where an estate trustee shows what came into the estate, what went out, and what the trustee claims as payment. If you are the trustee, it can give you a court-approved record of your work. If you are a beneficiary, it is a way to ask questions about how the estate was handled.

This article walks through how a passing runs in the Ontario Superior Court of Justice: when it happens, what to file, who must be served and by when, how to object, and what the judge can decide. Details can vary with the facts and the court location, so a lawyer can confirm what applies to your estate.

When passing accounts is optional and when it can be forced

Ontario has no statutory requirement for estate trustees to pass accounts at fixed intervals. A 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. 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 trustee to file a statement of the nature and value of the estate's assets at the date of death, and then ask for further particulars. Beneficiaries who want information sometimes start there.

Keeping records and what the accounts must contain

Estate trustees must keep accurate records of the assets and transactions in the estate. Good records make a passing far easier, so keep statements, receipts and invoices 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 how they were disposed of (on later passings, the 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 any 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.

Starting the application and serving the materials

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 the 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, such as a minor or an incapable person, they must also be served with the passing materials.

How a beneficiary objects

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.

In practice, this means you should read the accounts as soon as you receive them and set out each concern in the notice. Common concerns include unexplained payments or the compensation claimed. A lawyer can help you frame objections clearly and meet the deadline.

Unopposed passings, costs and the judgment

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.

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.

When the court passes accounts, the judgment declares the accounts passed and the capital and revenue receipts and disbursements. It also orders fair and reasonable compensation paid to the estate trustee out of the estate. The judge may allow a fair and reasonable allowance for the trustee's care, pains, trouble and time spent on the estate.

The judge can also inquire into any complaint or claim by a person interested, including misconduct or neglect causing loss, and may order payment to the estate.

What to do next

• Trustees: gather statements, receipts and records of every transaction since the date of death.
• Trustees: prepare accounts that meet the required contents, including the compensation you claim.
• Beneficiaries: if you want accounts, ask the trustee first, then consider whether a motion is needed.
• Beneficiaries: diarize the 35-day objection deadline as soon as you are served.
• Everyone: confirm the hearing date and the service deadlines with a lawyer before you file or serve anything.

Frequently asked questions