Paying Executor Compensation When There Are Multiple Co-Executors in Ontario

When drafting a Will in Ontario, parents often try to be fair by naming all their children as co-executors. 👩 While this seems like a good idea to prevent family jealousy, it frequently leads to massive confusion when it is time to calculate the Estate Trustee compensation. Many co-executors mistakenly believe that each person is entitled to a full 5% cut of the estate, which would rapidly bankrupt the inheritance.

Under Ontario law, the compensation tariff is calculated on the estate as a whole. 💰 As of May 2026, the global fee pie must be sliced up and shared. If one sibling in Toronto does 90% of the heavy lifting-like clearing out the house, meeting with lawyers, and dealing with the CRA-while the other sibling in Vancouver merely signs documents, an equal 50/50 split of the money is neither fair nor legally required. Navigating this division requires transparent communication and meticulous record-keeping.

Step-by-Step Process in Ontario

Managing the compensation split among co-executors requires a business-like approach. 📂 Whether the estate is located in Ottawa, London, or Sudbury, the Superior Court of Justice expects trustees to justify their pay. Follow these steps to ensure a fair and legally sound division of executor fees.

Step 1: Calculating the Global Compensation

First, you must determine the total allowable fee for the entire estate. 📝 In Ontario, the standard common-law tariff is approximately 5% (calculated as 2.5% on capital receipts, 2.5% on capital disbursements, 2.5% on revenue receipts, and 2.5% on revenue disbursements). Your estate lawyer will help you run the exact numbers based on the final estate accounting.

Step 2: Tracking Individual Time and Tasks (Docketing)

From day one, every co-executor must keep a detailed log or “docket” of their activities. 🕐 You must record the date, the task performed (e.g., “spent 3 hours cleaning the garage,” or “1 hour meeting with the accountant”), and the time spent. If a dispute arises later, the person with the most detailed records generally holds the most leverage in proving they deserve a larger share of the fee.

Step 3: Negotiating a Fair Split

Before distributing any money, the co-executors should sit down and agree on how to divide the global fee. 💬 If Co-Executor A managed the real estate sale and taxes, and Co-Executor B only arranged the funeral, a 80/20 split might be appropriate. This agreement should be put in writing and signed by all trustees and residual beneficiaries.

Step 4: Formal Passing of Accounts (If Disagreement Occurs)

If the co-executors cannot agree on how to split the money, or if the beneficiaries object to the amount, the matter must go to court. 💼 You will file for a formal “Passing of Accounts” at the local Superior Court of Justice. A judge will review everyone’s logs and decide exactly how much each executor deserves based on their actual effort and the complexity of their specific tasks.

How Much Does it Cost in Ontario?

Disputing executor compensation can quickly become an expensive legal battle that drains the estate. 💸 It is always better to mediate the split privately rather than forcing a judge to decide.

How Long Does the Process Take?

You do not get paid on day one. 🕙 Executor compensation is generally taken at the very end of the estate administration, just before the final distribution to the beneficiaries. For a standard Ontario estate, this means waiting 1 to 2 years. If the co-executors fight over the fee split and require a formal court Passing of Accounts, the delay can add an additional 8 to 12 months to the timeline.

Frequently Asked Questions (FAQ)

Author: lawyerinfo.ca