- Ontario has no fixed schedule requiring an estate trustee to pass accounts, but a person with a financial interest can ask the court to order it.
- A passing of accounts is a court process in which the accounts are reviewed and the trustee's compensation is approved.
- Beneficiaries who object must file a notice of objection at least 35 days before the hearing.
If you have been asked to approve estate accounts, or you are an estate trustee who wants the court's approval of what you have done, you have probably come across the phrase "passing of accounts". It sounds technical, but the idea is simple: the estate trustee shows the court every dollar that came in and went out, and the court decides whether the accounts are in order.
This article explains when a passing of accounts happens, what the accounts must contain, the main steps and deadlines, and what happens if someone objects. Every estate is different, so use this as a map, not a substitute for advice on your own file.
When does an estate have to go through a passing of accounts?
Many people assume accounts must be passed after every estate. They do not. Ontario has no statutory requirement for estate trustees to pass accounts at fixed intervals, and 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. A person who appears to have a financial interest in the estate may also move for an order requiring the estate trustee to pass accounts.
So a passing of accounts usually happens in one of two ways: the trustee decides to start one, or someone with an interest in the estate pushes for it.
What the court looks at
On a passing, the court can allow a fair and reasonable amount for the trustee's care, pains, trouble and time. The judgment declares the accounts passed and orders fair and reasonable compensation paid to the trustee out of the estate.
The judge also has power to inquire into any complaint or claim by a person interested in the accounts, including misconduct or neglect that caused loss, and may order payment to the estate.
What the accounts must contain
Estate trustees must keep accurate records of the assets and transactions in the estate. Accounts filed with the court must include the following:
- a statement of assets at the date of death on a first passing (or at the start of the period on later passings), cross-referenced to entries showing how each was dealt with
- an account of all money received and all money disbursed, including the trustee's compensation
- investment transactions, unrealized assets and all money and investments at the closing date
- all liabilities, contingent or otherwise
- a statement of the compensation claimed
The receipts, disbursements and investment accounts must each show the balance forward. Where the will treats capital and income differently, receipts and disbursements must be divided into capital and income.
The steps and timelines
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).
| Step | Timing or rule |
|---|---|
| Serve notice of application and draft judgment on everyone with a vested or contingent interest | At least 60 days before the hearing date if served in Ontario |
| Same service outside Ontario | At least 75 days before the hearing date |
| Serve the Public Guardian and Trustee or the Children's Lawyer where they represent a person with an interest | Required in addition to the above |
| Beneficiary files notice of objection (Form 74.45) | At least 35 days before the hearing date |
An objection cannot normally be raised at the hearing unless it was raised in a notice of objection, unless the court orders otherwise.
Unopposed and contested passings
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. Other regions may do things differently.
Costs on a passing are assessed under Tariff C. A party seeking more must serve a request for increased costs with a costs outline at least 15 days before the hearing.
What to do next
- If you are the trustee, gather bank statements, receipts and investment records and check they match your accounts.
- If you are a beneficiary, read the accounts carefully and write down each question or concern before the objection deadline.
- Diarize the 60-day (or 75-day) service period and the 35-day objection deadline.
- Speak with a lawyer before filing or objecting, especially if compensation or possible loss to the estate is in dispute.
Frequently asked questions
Do I have to pass accounts as an estate trustee in Ontario?
Not automatically. There is no statutory requirement to pass accounts at fixed intervals, and a trustee may choose not to unless the court compels it. A person with a financial interest can ask the court to order a passing.
How much notice do beneficiaries get?
The notice of application and draft judgment must be served at least 60 days before the hearing date if served in Ontario, or 75 days if served outside Ontario.
What if I disagree with the accounts?
You must serve and file a notice of objection (Form 74.45) at least 35 days before the hearing date, because objections generally cannot be raised later unless the court orders otherwise.
Can a passing of accounts be done without a hearing?
Yes, if no objections are filed or all are withdrawn, the court may grant judgment without a hearing once the required material is filed.
Sources
- Trustee Act, s. 61(3) — Ontario e-Laws
- Rules of Civil Procedure, R.R.O. 1990, Reg. 194, r. 74.17(1) — Ontario e-Laws
- Wall v. Shaw, 2018 ONCA 929 — ontariocourts.ca
- Estates Act, R.S.O. 1990, c. E.21, s. 50(1) — Ontario e-Laws
- Superior Court of Justice – Consolidated Practice Direction, Toronto Region, Part F.5.B — ontariocourts.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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