Passing of Accounts for a Trust in Ontario Court

A trustee handles money that belongs to other people. At some point, the trustee or the beneficiaries may want a formal check that the money was handled properly. In Ontario, that check is called a passing of accounts.

This article explains in general terms how it works before the Superior Court of Justice, who gets notice, and what a beneficiary can do. Court forms have been revised in recent years, so confirm current form numbers before filing anything.

What passing accounts means

Passing accounts means asking the court to review and approve a trustee's accounts of dealings with the trust. A trustee who wants to do this may file the accounts in the office of the Superior Court of Justice.

Rules 74.17 and 74.18 of the Rules of Civil Procedure govern the passing of estate trustees' accounts. With necessary modifications, they also apply to other trustees, attorneys under a power of attorney and guardians of property.

Who can start the process

The trustee can start it by filing their accounts. The trustee is not the only person who can raise the issue. A person who appears to have a financial interest in an estate may bring a motion for an order requiring the estate trustee to pass accounts.

Trustees often pass accounts to get approval of their work and to have their compensation allowed, since a judge may allow compensation on a passing of accounts.

A trustee, guardian or personal representative is entitled to a fair and reasonable allowance for their care, pains and trouble and the time spent on the estate, and a judge of the Superior Court of Justice fixes it. That rule does not apply where the document creating the trust fixes the allowance.

The steps in a passing

The trustee files the accounts verified by affidavit (Form 74.43), a copy of the certificate of appointment, and any earlier judgment on passing of accounts. The court then issues a notice of application to pass accounts (Form 74.44).

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

Children and people under disability

Where minors or persons under disability are involved, the Children's Lawyer and the Public Guardian and Trustee are served. The Office of the Children's Lawyer must be served where a minor or unborn person has an interest, and it represents the child and does not take instructions from the parents.

A person reaches the age of majority and stops being a minor at 18. A child generally receives their share at 18, or at the age stated in the will or beneficiary designation.

If you are a beneficiary who has concerns

If you receive a notice of application, do not ignore it. A beneficiary who objects to the accounts must serve and file a notice of objection to accounts (Form 74.45) at least 35 days before the hearing date. How a missed deadline would affect your position depends on your situation, so it is worth confirming with a lawyer.

• Read the accounts line by line and compare them to what you know of the estate.
• Note any missing receipts, unexplained transfers or unusually large fees.
• List your questions in writing so they can be put to the trustee or a lawyer.
• Count back from the hearing date so your objection is filed on time.

What to do next

• Trustees: gather bank statements, receipts, investment records and a time log.
• Trustees: prepare a clear list of everyone who has an interest, including minors.
• Beneficiaries: write down your concerns and the hearing date as soon as you get notice.
• Check the current court form numbers before filing.
• Speak with a lawyer early, because notice must be served at least 60 days before the hearing in Ontario, or at least 75 days before if outside Ontario.

Frequently asked questions