Understanding the Role of an Executor
When someone passes away in Ontario, their executor (also called an estate trustee) is the person legally responsible for carrying out the wishes in their will. It’s a legal role with real accountability.
The executor ensures that debts are paid, taxes are filed, and the remaining estate is distributed exactly as outlined in the will. Under Ontario’s Estates Act and Trustee Act, the executor has a legal duty to manage the estate honestly and efficiently for the benefit of the beneficiaries.
The Primary Duties of an Executor
- Locate and review the will
The first step is to find the most recent valid will and understand its instructions. Bonus tip; If you can’t find a copy of the will call around to law firms that were used and they may have an spare copy. - Arrange the funeral and handle immediate affairs
Executors often take care of funeral planning and secure the deceased’s property and finances. - Apply for probate (if necessary)
Probate is a court process confirming the will’s validity and the executor’s authority. Not all estates require probate, but banks and real estate transfers often do. Learn more about probate here. - Collect and value assets
Executors must identify, value, and safeguard all estate assets; real estate, jewelry, bank accounts and personal belongings. - Pay debts and taxes
Before distributing anything, the executor must ensure all outstanding debts, final owed taxes to the CRA, and estate taxes are paid. - Distribute the remaining estate
Once all legal and financial obligations are handled, the executor distributes what remains according to the will. - Maintain clear records
Executors must keep detailed records of every transaction. Beneficiaries have a right to see how the estate was managed. Keeping clear records of transactions protects you (the executor) in case of any disputes.
For help from a lawyer coaching you through this process, visit our Wills and Estate Law Services
Can a Beneficiary Be an Executor?
Yes. In Ontario, it’s common, and perfectly legal, for a beneficiary to also be the executor.
Many people name a trusted family member who is also inheriting part of the estate.
The dual role can lead to tension if other beneficiaries feel decisions aren’t being made fairly. The key is transparency: keeping accurate records, providing updates, and acting in good faith can help avoid disputes.
If you’re both an executor and a beneficiary, remember that you must always act in the best interests of the entire estate, not just your own share.
Executor Compensation in Ontario
Executors are entitled to reasonable compensation for their work, typically between 2.5% and 5% of the estate’s total value, depending on complexity. The amount can be approved by beneficiaries or, if there’s disagreement, by the court.
If you’re unsure about what’s fair or need help calculating executor compensation, consulting a lawyer can save you from potential conflict later on.
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When to Seek Legal Advice
Serving as an executor can be time-consuming and legally complex, especially if the estate includes multiple properties, business assets, or beneficiary disputes.
Getting professional guidance early can prevent errors that could result in personal liability or family conflict.
At Angrove Law, we simplify the estate process. We offer flat-fee Wills and Powers of Attorney and clear legal advice to help executors manage estates confidently and fairly.
Book a Free Consultation to discuss your executor responsibilities today.
FAQs: What does an Executor of a Will Do
Can a beneficiary be an executor?
Yes. A beneficiary can serve as an executor in Ontario. It’s a common choice, but they must act impartially and in the best interests of all beneficiaries.
What are the primary duties of an executor of a will?
Executors manage the deceased’s estate, from securing assets and paying debts to distributing inheritances and filing taxes.
What happens if an executor doesn’t fulfill their duties?
If an executor fails to act properly, beneficiaries can apply to the court to have them removed or to compel them to pass their accounts. Executors can also be held personally liable for mismanagement.
How Much Can an Executor Charge in Ontario?
Executors in Ontario are entitled to reasonable compensation for the time, skill, and effort required to administer an estate. The legal authority comes from section 61(1) of the Trustee Act, which allows the executor to claim “fair and reasonable” compensation, with the amount confirmed either by the beneficiaries or by the court on a passing of accounts.
Ontario practice has developed a guideline known as the 2.5 percent / 2.5 percent rule. It works as follows:
- 2.5 percent of capital received (assets brought into the estate)
- 2.5 percent of capital disbursed (assets paid out, including distributions and debts settled)
- 2.5 percent of revenue received (income earned by the estate during administration)
- 2.5 percent of revenue disbursed (income paid out)
- An additional care and management fee of about 0.4 percent per year on the value of the estate, where ongoing administration is involved
For a typical $500,000 estate, this often works out to roughly 5 percent of the estate value (about $25,000) once both capital sides are added together. Larger or simpler estates may earn a smaller percentage, and complex estates with disputes, businesses, or international assets may earn more.
Factors courts weigh when reviewing executor compensation:
- The size and complexity of the estate
- The care, responsibility, and risk assumed by the executor
- The time spent on the estate
- The skill and ability shown by the executor
- The success or failure of the administration
Executor fees are taxable as ordinary income to the executor in the year they are received. They are not capital gains, and they are not paid out of the executor’s own share if the executor is also a beneficiary. Many beneficiary / executors waive fees because the inheritance is taxed more favourably than the fee income.
If beneficiaries dispute the amount claimed, the executor can apply to the court for a passing of accounts. The court reviews the estate accounting in detail and approves a compensation amount it considers fair under the circumstances.
Is an Estate Trustee the Same as an Executor?
Yes. Executor and estate trustee describe the same role. The two terms are interchangeable in Ontario law and any documents you have.
“Executor” is the older common law term, still widely used in everyday conversation and in many wills. “Estate trustee” is the formal term Ontario adopted to align with the Estates Act and the Trustee Act, and is the term used in the Certificate of Appointment of Estate Trustee that the court issues at the end of a successful probate application.
Two narrower distinctions sometimes appear in practice:
- Estate trustee with a will means someone appointed by the deceased’s valid will (the executor named in the will).
- Estate trustee without a will means someone appointed by the court when the deceased died intestate, often the spouse or next of kin.
In both cases, the duties, the legal standard of care, and the entitlement to compensation are the same. Whichever term appears in the will or in the court paperwork, you are dealing with the same role.
When to Get Independent Legal Advice as an Executor
Many executors find it useful to consult a lawyer at the start of an estate, even if they plan to handle most of the work themselves. A short consultation can clarify whether probate is needed, identify tax obligations, and flag risks before they become expensive.
Situations where legal advice is especially valuable:
- The will is unclear, contains old wording, or might be challenged
- The estate includes real estate, business interests, or investment portfolios
- Beneficiaries disagree about distribution or the executor’s actions
- There are dependants who may have a claim under the Succession Law Reform Act
- The executor is concerned about personal liability for tax filings or distributions
- Questions arise about appropriate compensation
Without a Certificate of Appointment of Estate Trustee, banks and the Land Registry Office may refuse to act on the executor’s instructions. Ask your lawyer to confirm whether probate is required for your specific assets and prepare the application correctly the first time, which avoids the most common cause of delay.
