Named as an Executor in Canada? Your Duties, the Probate Costs, and the Traps to Avoid

Being named the executor of someone's will — called a liquidator in Quebec — feels like an honour, and it is. But it is also a legal job with a fiduciary standard: the courts hold you to the care of a careful, honest manager of other people's money. Most people say yes without knowing what the work actually involves. Here is the honest version.

First, you are allowed to say no. If you were named in a will and would rather not serve, you can renounce the appointment — but do it before you start acting as executor. Once you have "intermeddled" (taken control of assets, paid bills), the courts treat you as having accepted, and stepping away gets much harder.

The core duties run in a fixed order. Secure and inventory the assets: bank accounts, property, investments, personal effects. Apply for probate where the institutions demand it — in Ontario this means a Certificate of Appointment of Estate Trustee from the Superior Court of Justice, which banks and the land registry office almost always require before they release anything. Notify beneficiaries and creditors, then pay the estate's debts and taxes before a dollar goes to any heir. That includes the deceased's final T1 income tax return (generally due six months after the death, or April 30 of the following year, whichever is later) — and remember, the estate is deemed to have sold its capital property at fair market value just before death, so capital gains tax on the final return is often the biggest bill.

Probate itself costs real money, and Ontario's are among Canada's highest. The Estate Administration Tax is $0 on the first $50,000 of estate value and $15 for every $1,000 (or part of $1,000) above that — roughly 1.5% of the amount over $50,000. A $500,000 estate pays $6,750; a $1,000,000 estate pays $14,250. Assets that bypass probate — jointly held property with right of survivorship, RRSPs, TFSAs and life insurance with a named beneficiary — are not part of that calculation, which is why beneficiary designations are one of the simplest ways to cut the fee. (Other provinces charge far less: British Columbia caps out around 1.4%, Quebec charges a flat fee for notarial wills, and Alberta has eliminated probate fees entirely.)

Executors are entitled to be paid, but the number surprises people. In Ontario, the Trustee Act says compensation must be "fair and reasonable" as allowed by a judge — there is no fixed statutory percentage, despite the popular claim. In practice, courts use a benchmark of about 5% of the estate (2.5% on assets gathered in, 2.5% on assets paid out), and beneficiaries can challenge the amount by asking the court to review your accounts. Compensation is taxable income to you. In Quebec, liquidators are generally not entitled to compensation at all unless the will provides for it or the heirs agree. The single most useful thing a will-maker can do: set the executor's compensation in the will itself, and the argument never happens.

The traps that catch executors are predictable. Distributing to beneficiaries before all debts and taxes are cleared makes you personally liable for the shortfall. Mixing estate money with your own is never acceptable — open a separate estate account. Keep detailed records of every decision and receipt; if beneficiaries ask you to "pass your accounts" before a judge, your notes are your defence. Aim to wrap up within about a year — the informal standard is the "executor's year" — and communicate with beneficiaries throughout, because silence is what turns family estates into family lawsuits.

Writing your own will? Choosing the right executor is one of the most important decisions in it. Our free Last Will and Testament tool lets you name your executor and backups, spell out compensation, and apply your province's rules — in English or French. And if your existing will names someone who can no longer act, our Codicil tool updates the appointment without rewriting the whole will.