Estate Trustee Compensation and Passing of Accounts in Ontario

Published October 9, 2026 · Meysami Law Professional Corp. · Ottawa

An estate trustee may spend substantial time identifying assets, paying liabilities, filing tax returns, communicating with beneficiaries and distributing an estate. Ontario law permits a court to allow fair and reasonable compensation, but a compensation claim should be supported by the will, the work performed and organized estate accounts. A passing of accounts is the formal court process for reviewing those accounts and related claims.

Start with the will and appointment documents

Review the will, any codicils, the certificate of appointment and any agreement that may address compensation. Confirm who is acting, whether there are co-trustees and what work each person performs. Do not assume that an informal family expectation settles the legal entitlement or amount.

Keep records from the first transaction

Maintain a complete ledger of assets, receipts, expenses, investments, distributions and property remaining in the estate. Retain bank statements, invoices, tax documents, correspondence and proof of each payment. Keep the estate's money separate from personal funds and record the purpose and date of every transaction.

Record the work supporting a compensation claim

Keep a contemporaneous log describing tasks, dates, time, complexity and results. Administration can include securing property, locating beneficiaries, dealing with creditors, arranging valuations, managing investments, coordinating tax work and preparing distributions. A percentage-only calculation may not explain whether the proposed compensation is fair and reasonable for the actual care, effort and time involved.

Explain the proposed compensation before distribution

A clear estate report should distinguish compensation from reimbursement of proper estate expenses and from professional invoices. Provide beneficiaries with meaningful accounts and enough information to understand the proposal. If the will, beneficiaries, tax treatment or proposed amount creates uncertainty, obtain advice before paying compensation or making a final distribution.

Understand what passing accounts means

A passing of accounts is a court application under Ontario's estate procedure rules. The prescribed materials include estate accounts, an affidavit verifying them, notice to persons with a financial interest and documents addressing objections or an unopposed judgment. The process can also put the trustee's compensation and conduct before the court. It is more than sending a spreadsheet to beneficiaries.

Know when court or beneficiary approval may be needed

Whether a formal passing is required or prudent depends on the will, the beneficiaries, any minors or incapable persons, disputes, the administration and the protection sought by the trustee. Informal approval or releases may be considered in some estates, but they are not interchangeable with a court order in every situation. Obtain estate advice before relying on a release, paying compensation or closing the estate accounts.

This article is general information as of October 9, 2026, not legal, tax or financial advice. Rules and circumstances can change. Contacting the firm does not create a lawyer-client relationship.