When Does an Executor Have to Pass Accounts in Nova Scotia?

Being an executor in Nova Scotia means you hold other people's money and property. At some point you usually have to show the Probate Court what came in, what went out, and what is left. That process is called passing accounts.

This article explains when it is required, how the forms and timelines fit together, and when you may be able to skip it. The rules sit in the Probate Court regulations, which have been amended more than once, so confirm the details before you file.

This article covers the law of Nova Scotia.

When passing accounts is required

The personal representative, which includes an executor, must apply to pass accounts within 18 months of the grant unless the court orders a longer period. An application is also needed when you are seeking a discharge, or when the court orders it.

• Within 18 months of the grant, unless the court extends the time.
• When you are asking to be discharged from the role.
• When the court orders you to pass accounts.

If you think the estate will not be finished within 18 months, ask about an extended period rather than letting the deadline pass.

Keep records from day one

The personal representative must keep accurate records of all property and debts of the estate. Passing accounts is far easier if those records are tidy from the start.

• Keep statements showing the value of each asset at the date of death.
• Save receipts for every payment made from the estate.
• Record each debt, claim and how it was settled.
• Note the date and amount of every distribution to beneficiaries.
• Keep estate money separate from your own.

Forms and timelines for passing accounts

There are two routes. Form 39 is the application with a hearing, and Form 40 is the application without a hearing. You file the personal representative's affidavit (Form 43) not less than 10 days before the passing date. The hearing date is not less than 45 days from the receipt of the application.

Interested persons who do not file a Notice of Objection (Form 42) in time are treated as consenting. How to object is a separate topic.

What the court can do and how commission fits in

The court's powers include requiring amendments to the accounts, setting the commission and appointing an accountant. A commission covers all of the personal representative's services in completing the administration. In setting it, the court may consider the size of the estate, the care and responsibility involved, the time spent, skill and the success of the administration.

Beyond actual and necessary expenses, the commission may not exceed five percent of the amount received, and the court sets the final amount when the estate closes. No percentage is automatic. If the will sets a fee, that generally replaces the statutory commission unless the executor renounces it within the time limit. A fee agreement made between the testator and the proposed representative binds neither the court nor beneficiaries unless it is written into the will.

When accounting can be skipped

Accounting may be dispensed with. This uses Form 37 (the personal representative's affidavit that accounting is not required) and Form 38 (consent), together with a release in Form 36 from the beneficiaries. This depends on the beneficiaries being willing to sign, so it may not suit an estate where relationships are strained.

What to do next

• Note the date of the grant and count 18 months forward.
• Gather statements, receipts and a list of debts paid.
• Decide whether beneficiaries are likely to sign releases, or whether a passing is safer.
• Check that you are working from the current version of the Probate Court regulations, since the rules can change.
• Speak with a lawyer or accountant if the estate is complex or someone may dispute the accounts.

Frequently asked questions