When Must an Executor Pass Estate Accounts in BC Court?

If you are a beneficiary of an estate in British Columbia, you may be waiting to see what the executor has done with the money and property. One way the law builds in oversight is by requiring the executor's accounts to go before the court for approval, which is called passing the accounts.

This article explains the main timing rule in the Trustee Act, how a beneficiary can ask for accounts every year, and what can happen if an executor does not comply. The details of section 99 matter, so the current text should be checked before you rely on any deadline.

This article covers the law of British Columbia.

What it means to pass accounts

Passing accounts means the executor puts a formal record of the estate's finances before the court and asks the court to approve it. It is different from simply sending a beneficiary a summary of what has happened.

The provincial government guide to wills and estates lists, among an executor's duties, preparing accounts that show the assets, receipts, disbursements and distribution of the estate, and getting the court's approval of the accounts.

• Assets: what the estate owned and held.
• Receipts: money and property that came into the estate.
• Disbursements: what was paid out, such as debts and expenses.
• Distribution: what was given to the beneficiaries.

The general two-year rule

Under the Trustee Act, executors, administrators and trustees under a will must obtain an order for passing their first accounts within two years of the grant or appointment, unless the exceptions in section 99 apply.

Exceptions to this rule do exist. They are not listed here, because whether one applies depends on the exact wording of section 99 and on the facts of the estate. A lawyer can confirm whether an exception applies to the estate you are concerned about.

Requiring accounts every year

A beneficiary is not limited to the first set of accounts. The representative must pass accounts annually, within one month of the anniversary, if a beneficiary serves notice requiring it.

How a beneficiary's notice requiring annual accounts should be given depends on your situation, so it is worth confirming the details with a lawyer before you serve anything.

If the executor does not pass accounts

A trustee who fails to pass accounts as required may be called before the court to explain why.

Whether to take that step, and how, depends on the circumstances. Sometimes a delay has an ordinary explanation, and sometimes it signals a larger problem. Getting advice early helps you choose a sensible approach.

Executor pay and what to do next

Accounts often raise the question of what the executor is paid. The court may, on application, settle the amount of the compensation, even if the estate is not otherwise before the court. These rules do not apply where the will or other trust instrument sets the allowance. A separate article covers executor fees in more detail.

• Find the date the grant was issued or the executor was appointed.
• Note whether two years have passed.
• Write down what information you have received so far.
• Check the current text of Trustee Act section 99, including any exceptions.
• Speak with a lawyer before serving a notice requiring annual accounts or asking the court to act.

Frequently asked questions