The Plain-English Executor Guide for Ontario

What an executor actually does

Ontario law calls the executor an "estate trustee". Same job, fancier name.

Here's the whole role in one sentence: gather everything the person owned, pay what they owed (including taxes), and hand out what's left exactly as the will says, while keeping good records of every step.

You're acting for the estate and for every beneficiary, not for yourself and not for whichever family member calls you most often. That's the part that makes it a job, not just a favour.

Can I say no?

Yes. Being named in a will doesn't oblige you to act.

If you don't want the job, say so early, before you start dealing with the person's money or property. You can formally step aside (it's called "renouncing"). Once you've started acting as executor, stepping away gets harder and may need a court's permission.

You also don't have to do it all yourself. Executors can hire a lawyer, an accountant or a trust company to do much of the work, and reasonable professional fees are normally paid by the estate. The responsibility stays with you, but the heavy lifting doesn't have to.

The six big jobs, in order

1. Find and protect everything. Locate the will, secure the home and valuables, keep insurance in place, and start an estate file. Nothing should lose value on your watch.
2. Figure out what's there and what's owed. List every asset and debt with its value on the date of death. Note which assets have a named beneficiary or a joint owner, because those usually pass outside the estate.
3. Get the authority you need. Many banks and investment firms won't release money, and land can't usually be transferred, without probate. In Ontario that's a Certificate of Appointment of Estate Trustee from the Superior Court of Justice. Not every estate needs one. See our probate guide.
4. Deal with the taxes. File the final tax return and any estate (T3) returns, pay what's owing from the estate, and ask the Canada Revenue Agency for a clearance certificate before the final distribution. See taxes after a death.
5. Pay the bills in the right order. Reasonable funeral costs and the costs of running the estate come first, then taxes and other debts. Only then do beneficiaries get paid.
6. Distribute and account. Show the beneficiaries what came in and what went out, get their sign-off, then hand out what's left as the will directs.

Turn this into a step-by-step list with the executor checklist

Your legal duties (the short version)

As executor you're a "fiduciary". In plain English, that means you must:

• Act honestly, in good faith, and in the best interests of all the beneficiaries.
• Treat beneficiaries even-handedly. No favourites, even if one of them is you.
• Keep estate money completely separate from your own. Use an estate bank account.
• Take the same care with the estate that a prudent person would take with their own affairs.
• Keep records and receipts for everything.
• Never profit personally from the estate, beyond any compensation that's properly approved.
• Keep beneficiaries reasonably informed.

Where executors get into trouble

Most executor problems aren't dishonesty. They're well-meaning shortcuts. Watch for these:

• Paying out too soon. If you distribute the estate before taxes and debts are paid and the CRA later finds more tax owing, you can be personally responsible for it, up to the amount you handed out. The clearance certificate exists to protect you.
• Mixing money. Running estate money through your own account, even briefly, makes the paper trail a mess and invites suspicion.
• Letting things slide. An empty house without proper insurance, investments left unmanaged or deadlines missed can all leave you answerable for the loss.
• Favouring someone. Letting one beneficiary take items or live in the house rent-free without everyone's agreement causes resentment and sometimes lawsuits.
• Paying yourself early. Taking your compensation before the beneficiaries or a court approve it (sometimes called "pre-taking") is generally not allowed.

How long it takes

There's no fixed deadline, but a simple estate commonly takes about a year, and more complex ones take longer. Courts have long recognized "the executor's year" as a reasonable amount of time to wind things up before beneficiaries can press for their share.

Things that tend to set the pace:

• How long the court takes to issue the probate certificate
• Selling real estate
• The CRA's assessment of the final returns and the clearance certificate, which can take several months
• Ontario's six-month waiting periods for spousal and dependant claims
• Whether the family gets along

Getting paid (executor compensation)

Executors in Ontario are entitled to "fair and reasonable" compensation for their time and effort. Many family members waive it. Either choice is fine.

When it's claimed, Ontario courts often start from a guideline of roughly 2.5% of the money that comes into the estate plus 2.5% of the money paid out, which works out to about 5% of the estate's value in many cases. Where there's ongoing investment management over a longer period, an annual care and management fee of up to two-fifths of 1% of the average value of the assets may be allowed. These are starting points, not entitlements. A court can reduce them if the work was simple.

A few things to know:

• The will may set a different amount. If it does, that usually governs.
• Compensation needs the beneficiaries' approval, or a court's.
• Executor compensation is taxable income to you.
• Out-of-pocket expenses (postage, mileage, courier fees) are reimbursed separately. Keep receipts.

Keeping beneficiaries in the loop

Most estate fights start with silence. A short update every month or two ("the house is listed, the tax return is filed, we're waiting on the CRA") prevents a surprising amount of conflict. Put important things in writing, share the will with the people named in it, and be ready to show your records.

When to get professional help

Consider a lawyer, accountant or trust company if:

• There's no will, or the will is unclear or handwritten
• There's real estate, a business, a farm or assets outside Ontario
• A beneficiary is under 18 or can't manage their own affairs
• Someone is unhappy with the will or with you
• There are big RRSPs, RRIFs or investments, or complicated taxes
• You live outside Ontario
• You just don't have the time or the stomach for it

Reasonable professional fees are normally paid by the estate.