Executor Duties in Ontario: What You’re Really Signing Up For

05 Nov Executor Duties in Ontario: What You’re Really Signing Up For

Being named an executor in a will can feel like an honour – a sign that someone trusts you deeply. But it also comes with serious legal and financial responsibilities. In Ontario, the role of an executor (also called an estate trustee) involves much more than simply handing out belongings. It’s a structured legal process governed by provincial law, and missteps can create delays, disputes, or even personal liability. Understanding executor duties in Ontario before you accept the role can help you navigate it confidently and avoid costly surprises.

1. Applying for Probate in Ontario

In many cases, before you can begin distributing the estate, you’ll need to apply for probate in Ontario. Probate is a legal process where the court confirms the validity of the will and authorizes you as the executor. Not every estate requires probate – for example, smaller estates or those where all assets are jointly owned may avoid it. However, if the deceased owned real estate solely in their name or held assets which require proof of authority to transfer, probate is usually required.

Part of your role is to gather information about the estate and submit documentation to the court, including the will, the death certificate, and a detailed valuation of assets. You’ll also need to calculate and pay the Estate Administration Tax, which is based on the total value of the estate.

2. Managing Estate Assets and Debts

Once probate is granted, your duty shifts to managing the estate’s finances. This includes:

• Identifying and safeguarding property (e.g., locking a home, securing valuables)
• Closing bank accounts and opening an estate bank account
• Gathering and valuing all assets (real estate, investments, personal items, etc.)
• Notifying financial institutions, insurance companies, and government agencies

A key part of estate administration in Canada is resolving debts and outstanding obligations before distributing anything to beneficiaries. This may include:

• Paying income taxes
• Settling credit card or personal loan balances
• Handling outstanding utility or service bills
• Filing final tax returns

If debts exceed the estate’s value, you may have to sell assets – and certain assets can’t be distributed until all taxes and liabilities are addressed. Distributing assets too early can result in the executor being held personally responsible for any unpaid debts.

3. Distributing Assets to Beneficiaries

After all debts, taxes, and administration expenses have been handled, you can distribute the remaining estate. This often involves transferring property titles, distributing funds, or delivering personal items as outlined in the will. Clear communication is essential – beneficiaries may become impatient or emotional during this stage, so providing updates can help maintain transparency and trust.

4. Potential Legal Liability

One of the most important things to understand about executor duties in Ontario is the potential for personal liability. If you mismanage funds, fail to pay taxes, or distribute assets incorrectly, beneficiaries or creditors may pursue legal action against you. To protect yourself:

• Keep detailed financial records
• Avoid mixing estate money with your personal funds
• Consider working with professionals (lawyers, accountants, appraisers)

Executors are entitled to compensation for their work, typically around 2.5% to 5% of the estate value, depending on complexity. But with compensation comes responsibility – and sometimes stress.

Getting the Right Advice Matters

Serving as an executor is an important way to honour someone’s trust – but it can also be overwhelming without the right guidance. From probate to tax filings to navigating emotional family dynamics, the process is rarely simple.

If you have been named an executor, are currently administering an estate, or simply want to understand your responsibilities before agreeing to the role, the Estate team at Stewart Esten can help. Our lawyers can guide you step-by-step, ensure compliance with Ontario law, and help protect you from personal liability.

Contact Stewart Esten Law Firm to speak with an estate lawyer who can support you through the process with clarity and confidence.