Passing Estate Accounts in Ontario: An Executor's Guide

Passing accounts is the court process where a judge reviews what you did as estate trustee: what came in, what went out, what is still owed and what you are claiming for your work. You may choose to do it to get approval of your work, or a beneficiary may have asked for it.

The process has set forms and fixed deadlines in the Rules of Civil Procedure. This guide walks through the records you need, what goes into the application, the timeline, how compensation is decided and what the judge can do. A lawyer can confirm how it applies to your estate.

Start with good records

Estate trustees must keep accurate records of the estate's assets and transactions. The accounts you file with the court must include the assets at the date of death, all money received, all liabilities, and a statement of the compensation you claim.

A beneficiary or other interested person can compel accounts, and a beneficiary counts as an interested person. Keeping records from the first day is far easier than rebuilding them later.

• A list of assets as they stood at the date of death
• A record of every amount of money received by the estate
• A list of all liabilities
• Receipts and statements for expenses you paid
• A clear statement of the compensation you are claiming

What goes into the application

On an application to pass accounts, the estate trustee files the estate accounts verified by affidavit on Form 74.43, a copy of the certificate of appointment, and any earlier judgment on passing of accounts.

The timeline and deadlines

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

A beneficiary who objects to the accounts, including the compensation claimed, must serve a Notice of Objection to Accounts on Form 74.45 at least 35 days before the hearing date. If no objection is made and the required record is filed, the court may grant judgment without a hearing.

A party seeking costs above Tariff C must serve a request for increased costs on Form 74.49.2 or 74.49.3 with a costs outline at least 15 days before the hearing, and any objection must be served at least 10 days before the hearing.

How the judge decides your compensation

An estate trustee is entitled to a fair and reasonable allowance for care, pains and trouble and time spent, as allowed by a judge of the Superior Court of Justice. The statute sets no percentage or formula. When accounts are passed, the judge may allow that fair and reasonable allowance, which is how a court assesses a fee claim when a beneficiary objects.

• If the will fixes the allowance, the Trustee Act s. 61 test does not apply.
• If you are a lawyer acting as estate trustee and you provided necessary professional services to the estate, the allowance may be increased.

Be ready to explain the work you did and the time it took. A clear, honest statement of your claim helps the court and the beneficiaries understand it.

What the judge can do, and relief for honest mistakes

On passing accounts, the judge may make a full inquiry into the deceased's property and may order the executor, administrator or trustee to pay such sum by way of damages or otherwise as is just. This is a route to recover misused estate funds.

There is also protection for honest mistakes. The court may wholly or partly relieve a trustee of personal liability for a breach of trust if they acted honestly and reasonably and ought fairly to be excused.

What to do next

• Gather your records and organize them under the headings the accounts require
• Confirm who has a contingent or vested interest, so everyone is served
• Work backward from the hearing date to set your service dates
• Decide how you will explain your compensation claim
• Speak with a lawyer before filing, especially if you expect an objection or a costs request

Frequently asked questions