- Ontario's estate trustee compensation rule applies whether the trustee is an individual or a trust company.
- Compensation is fixed by a judge when accounts are passed, not by a company's own fee schedule alone.
- A trustee may generally take compensation before accounts are passed only with agreement of all interested persons, court approval, or where the will allows it.
- The estate, not the trustee personally, pays Estate Administration Tax.
Some wills name a trust company, rather than a family member or friend, to manage the estate. If you are a beneficiary or a relative of the person who died, you may be wondering what that means in practice: how the company gets legal authority, what it will charge, and whether the family loses a say.
This article explains how the process generally works in Ontario and where a trust company differs from a family executor. Every estate is different, so the details depend on the will and the assets. A lawyer can confirm how this applies to your situation.
Can a corporation or trust company act as estate trustee?
An estate trustee (often called an executor) is the person or company with legal authority to collect the assets, pay the debts and distribute what is left. Ontario's rule on estate trustee compensation expressly covers both individuals and trust companies.
In practice, a trust company named in the will has the same job as a family executor. It must follow the will and the law, keep records, and be able to explain what it did with the estate's money. The difference is mostly in how it works: it has staff, set procedures and its own fee schedule.
How a trust company gets its authority
Like any estate trustee, the company usually needs a court document to prove its authority. In Ontario, probate is applied for in the Superior Court of Justice. A Small Estate Certificate is used if the estate is valued at up to $150,000; otherwise the document is a Certificate of Appointment of Estate Trustee. Probate is usually needed if the deceased owned real property or held assets at a financial institution that requires it.
- The deceased's original will and any codicil, plus proof of death such as a death certificate.
- Form 74A, the application, signed before a Commissioner for Taking Affidavits.
- An affidavit of service (Form 74B) or a lawyer's certificate of service (Form 74B.1), and a draft certificate (Form 74C).
- The total value of real property, personal property and the whole estate at the date of death.
Before filing, a copy of the signed application must be sent to each estate beneficiary, meaning everyone entitled to a share. The application is filed in the county or district where the deceased lived. Ontario says applications are typically processed within 15 business days, and longer if documents are missing or a judge must decide an issue.
A bond is required in some situations, for example if there is no will, if the applicant is not the named trustee, or if the applicant does not live in Ontario, another Canadian province or territory, or a Commonwealth country. Whether and how that last rule applies to a company is a question for a lawyer.
What a trust company charges, and how it differs from a family executor
Under the Trustee Act, a judge passing the accounts may allow a fair and reasonable allowance for the care, pains, trouble and time spent on the estate. That is the basis for estate trustee compensation, whether the trustee is an individual or a trust company, and it is fixed when accounts are passed.
A trust company will normally have its own published fee schedule and will usually ask you to read it before agreeing. Treat that schedule as the company's proposal. The final amount remains open to review by a judge on a passing of accounts.
| Question | Family executor | Trust company |
|---|---|---|
| Basis of compensation | Fair and reasonable allowance fixed on a passing of accounts | Same legal basis |
| Taking pay before accounts are passed | Only with agreement of all interested persons, court approval, or where the will provides | Same rule |
| Who pays Estate Administration Tax | The estate, not the trustee personally | The estate |
| Day-to-day approach | Often unpaid or modest, and personal knowledge of the family | Staff and set procedures, with a fee schedule to review |
The row on timing matters. A trustee, company or not, should not simply pay itself from the estate bank account as it goes. Doing so before accounts are passed is generally allowed only in the three situations above.
Other costs that are not trustee compensation
Several costs arise whoever is trustee. Estate Administration Tax is not a court fee. It is paid as a deposit when applying for the certificate and becomes the tax once the certificate is issued. For applications on or after January 1, 2020, there is no tax on an estate valued at $50,000 or less, and above that it is $15 per $1,000 (or part thereof) of the total estate value.
Court fees are separate. Ontario's fee table lists $432.00 for an application to pass accounts and $232.00 for other estate applications such as directions. Because compensation is fixed when accounts are passed, a trust company's final fee may be tied to that process.
What to do next
- Find the will and read exactly how the trust company is named, and whether any alternate is named.
- Ask the company for its fee schedule and a written explanation of how it will report to beneficiaries.
- List the assets and estimate the estate's value, since this drives the application and the tax.
- Ask a lawyer whether any bond requirement applies and how beneficiaries should be notified.
- If the company declines or cannot act, ask a lawyer about nominating another person; beneficiaries may nominate someone if a named trustee or alternate declines or cannot act.
If you are worried about a fee, raise it early and in writing. A lawyer can explain what you can ask the court to review.
Frequently asked questions
Can a trust company act alone as estate trustee?
Ontario's compensation rule refers to estate trustees who are individuals or trust companies, so a company can fill the role. Whether the will names it alone or alongside a family member depends on the will itself.
Can the company set its own fee?
A company usually has its own fee schedule, but compensation is fixed by a judge on a passing of accounts as a fair and reasonable allowance for care, pains, trouble and time. A trustee generally takes pay before that only with agreement of all interested persons, court approval, or where the will provides.
Does the trust company pay Estate Administration Tax?
The estate pays it, not the trustee personally. The tax is paid as a deposit when applying for the certificate and becomes the tax once the certificate is issued.
What if the named company will not act?
If a named trustee or alternate declines or cannot act, beneficiaries may nominate another person. A lawyer can explain the forms and steps involved.
Sources
- Ontario.ca – Estate Administration Tax — ontario.ca
- Ontario.ca – Civil court fees — ontario.ca
- Ontario.ca – Apply for probate of an estate — ontario.ca
- Ontario.ca – Administering estates — ontario.ca
- e-Laws – Trustee Act, R.S.O. 1990, c. T.23 — Ontario e-Laws
- Court of Appeal for Ontario – Wall v. Shaw, 2018 ONCA 929 — ontariocourts.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
This is a wills & estates question
Start a file online — flat, published fees, reviewed by a licensed lawyer before a dollar is owed.