Estate Trustee Compensation
Being an executor (estate trustee) is real work: you carry legal duties, manage assets, deal with beneficiaries, and report to the court if needed. Ontario law allows reasonable compensation for this work.
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~5% of the estate value in total compensation, subject to adjustment.
Courts often start from the “percentage method” and then adjust up or down for fairness.
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2.5% of capital receipts
2.5% of capital disbursements
2.5% of income receipts
2.5% of income disbursements
0.4% per year for care & management (only when there is genuine ongoing investment/management over multiple years)
Keep detailed time logs and records. Courts may compare the percentage result to your time, skill, complexity, risk, and results and adjust accordingly.
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One global fee for the job, shared fairly based on contribution—not multiplied by the number of executors.
An executor excluded from meaningful participation may still be entitled to a fair share.
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Any Will clause about compensation
Time and effort, complexity, care and responsibility
Skill/ability deployed; results achieved
Size of the estate (large ≠ complex; a simple $2M estate may justify less than 5%)
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Real estate: Compensation is usually on the net proceeds to the estate (after mortgages, commissions, legal fees), not the gross sale price.
Outsourcing & double-charging: If you hire others to do “normal executor work,” deduct those costs from the % result and don’t charge a fee on those disbursements.
Timing: Compensation is typically paid at the end, after beneficiaries approve (or the court passes) the accounts—rarely before.
POA overlap: If you were also attorney for property, do not double-claim for the same work/value. Accounts for POA compensation can be reviewed.
Taxes/HST: Compensation is taxable income to the executor. Professionals may need to charge HST. CRA may require payroll remittances (T4/CPP).
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Start a task & time log on day one.
Keep clean accounts: separate capital vs. income, receipts vs. disbursements.
Get early advice if there’s real estate, difficult beneficiaries, or complex investments.
We help executors and beneficiaries set fair compensation, prepare/defend accounts, and resolve disputes—efficiently and pragmatically.
Why Choose Haider Khan Legal?
We help executors and beneficiaries set fair compensation, prepare/defend accounts, and resolve disputes—efficiently and pragmatically. We help document the work performed, assess a reasonable amount, seek beneficiary approval where appropriate, and address disputes or court approval if required.
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