What Records Should an Executor Keep in Ontario?

Most executor problems are not dramatic. They come from missing receipts, mixed-up bank accounts and payments no one can explain two years later. Good records protect you as much as the beneficiaries.

This article sets out what Ontario's rules expect, a practical list of what to keep, and how records connect to taxes and to passing accounts. A lawyer or accountant can tailor the list to your estate.

What the rules require

Estate trustees must keep accurate records of the estate's assets and transactions. If accounts are filed with the court, they must include assets at the date of death, all money received, all liabilities, and a statement of the compensation the estate trustee claims.

Why this matters in practice: a beneficiary is an interested person who can compel accounts. A person with a financial interest may also move for an order requiring the estate trustee to file a statement of the nature and value of the estate's assets, give further particulars, or pass accounts. Those motions may generally be made without notice, except a motion for further particulars, which requires 10 days' notice to the estate trustee.

A practical list of what to keep

• The will and any codicils, which you will refer to throughout the administration.
• A copy of the certificate of appointment once issued, which is filed with an application to pass accounts.
• A date-of-death list of every asset and debt, with statements showing values on that date.
• Every deposit and receipt of money, with its source.
• Every payment out, with the invoice or receipt and the reason.
• Funeral and burial invoices, and proof of who paid them.
• Debts and creditor correspondence, including any notices given to creditors.
• Records of investments and why decisions were made, since a trustee investing estate property must act with the care, skill, diligence and judgment of a prudent investor.
• Tax returns, slips, assessments and any clearance certificate.
• Your communications with beneficiaries, and any written agreements.
• A time log, if you plan to claim compensation.

Set up a simple system early

You do not need special software. A dedicated estate bank account, a spreadsheet ledger and one folder (paper or digital) for receipts will do. Keeping estate money apart from your own makes the accounts much easier to prove.

Expenses you pay personally can be recovered from the estate if properly incurred, but the court may later disallow them, so keep the receipt and a note of why the cost was needed.

If you plan to claim compensation, the Trustee Act says an estate trustee is entitled to a fair and reasonable allowance for their care, pains and trouble and time spent, as allowed by a judge of the Superior Court of Justice, and the statute sets no percentage or formula. The exception is a will that itself fixes the allowance, in which case that section does not apply. Either way, dated notes of the work you did give you something concrete to point to.

Deadlines your records support

Within 180 calendar days of receiving a certificate of appointment, the estate trustee must file an Estate Information Return. Having your date-of-death asset list ready makes that return much easier.

Tax filings also draw on your ledgers. Where the estate pays executor fees to someone who does not act as an executor in the course of a business, those fees are employment income reported on a T4 slip, and the estate must file a T4 Summary and the related T4 slips. The exception is a professional executor acting in the course of a business, whose fees are business income reported on a T4A slip rather than a T4. A T3 trust return for the estate must be filed no later than 90 days after the trust's tax year-end, and any balance owing is due within the same 90 days. A trust must file if its total income from all sources is more than $500, and it must also file, even at $500 or less, if it makes a capital distribution to beneficiaries; these filing rules changed for trust tax years ending on or after December 31, 2023. A graduated rate estate may have a non-calendar tax year, while other trusts generally must use a December 31 year-end.

If you apply to pass accounts, you file the estate accounts verified by affidavit (Form 74.43), a copy of the certificate of appointment, and any earlier judgment on passing of accounts. The notice of application and draft judgment must be served on every person with a contingent or vested interest at least 60 days before the hearing date (75 days if served outside Ontario). A beneficiary who objects must serve a Notice of Objection to Accounts at least 35 days before the hearing.

Good records can also protect you from personal liability. Before distributing, the executor must make sure any balance owing to the CRA is paid, and distributing without a clearance certificate when tax is owing can make the executor personally liable.

What to do next

• Open a separate estate bank account and use it for all estate money.
• Start a ledger today for money in and money out.
• Collect statements showing balances at the date of death.
• Scan or file every receipt as it arrives.
• Keep notes of key decisions and beneficiary conversations.
• Ask a lawyer or accountant to review your records before you distribute or pass accounts.

Frequently asked questions