There is no statutory percentage. The Trustee Act allows a fair and reasonable allowance, and the percentages below are only where the conversation starts.
Trustee Act s. 61 and the compensation tariff applied by the Ontario courts. Reviewed 28 August 2026.
Ontario courts conventionally begin with 2.5% of capital and revenue received, 2.5% of capital and revenue paid out, and a care and management fee of two fifths of one per cent of the average annual value of the estate.
That is a convention, not a right. The figure is then tested against the size of the estate, the care and responsibility involved, the time occupied, the skill displayed and the success achieved. A large but simple estate frequently attracts less than the tariff produces.
An executor cannot simply take compensation. It has to be approved, either by the beneficiaries consenting or by the court passing the accounts. Taking it first and asking later is how executors end up personally liable for costs.
Compensation is also taxable employment income to the executor, and the estate has payroll obligations on it. A gift left in the will instead of compensation is treated differently, which is often the better arrangement for a family member acting as executor.
The conventional tariff is 2.5% of receipts, 2.5% of disbursements, and a care and management fee of two fifths of one per cent of the average annual value of the estate. The Trustee Act itself sets no percentage — it allows a fair and reasonable allowance, and the tariff is only the starting point.
Yes. Compensation must be approved either by the consent of the beneficiaries or by the court on a passing of accounts, and beneficiaries regularly challenge it as excessive for the work actually done.
Yes. It is taxable income to the executor and generally treated as employment income, with the estate carrying the associated payroll obligations. A gift under the will is treated differently, which is often preferable for a family member.
Not safely. Pre-taking compensation without consent or a court order exposes the executor personally, including to a costs award.
Open your file tonight — a licensed Ontario lawyer will confirm your exact Land Transfer Tax and closing costs in writing.