In Ontario, a typical executor (or estate trustee) fee is often calculated using a "rule of thumb" amounting to approximately 5% of the total value of the estate. This is generally broken down as 2.5% on capital/revenue receipts and 2.5% on capital/revenue disbursements. This rate is not fixed by law but is commonly accepted as "fair and reasonable" for the time and responsibility involved.
Based on the Trustee Act, executors in Ontario are entitled to "fair and reasonable allowance" for their work, which can be up to 5% of the estate's worth (2.5% of assets received and 2.5% of assets distributed) as compensation.
In California, these fees start at 4% for the first $100,000 of an estate's value, 3% for the next $100,000 and 2% on the next $800,000.
Example Calculation:
If the total gross value of the estate is R1,000,000: Executor's fee (3.5%) = R35,000 (excluding VAT) Plus 6% on any income earned during administration.
Yes, fees are taxable income in the year the fees are paid. If I decide to take fees, what are the requirements to Canada Revenue Agency (CRA)? If you are not in the business of providing Executor / Administrator services: The Executor / Administrator is considered an employee of the Estate.
How Can an Executor Reduce Probate Costs?
The very first things an executor should do after a death are secure the residence, locate the original will, obtain multiple certified copies of the death certificate, and then start the probate process by filing the will and certificate with the probate court, while also safeguarding assets and documenting everything meticulously. It's crucial to act quickly to prevent fraud and ensure assets go to the right people, often with the help of a probate attorney.
All personal representatives must include fees paid to them from an estate in their gross income. If you aren't in the trade or business of being an executor (for instance, you are the executor of a friend's or relative's estate), report these fees on your Schedule 1 (Form 1040), line 8.
A solicitor/executor may only charge legal costs for legal work in obtaining a grant of probate and administering an estate if there is a charging clause in the will.
There are no true inheritance taxes in Ontario. In other words, there are no taxes that a person who inherits from an estate must pay. Beneficiaries do not pay tax on the money they inherit from an estate.
Use our updated for 2025 Ontario probate fees calculator to estimate your official probate costs accurately. For estates valued up to $50,000, there is no probate fee. For estates valued over $50,000, the probate fee is $15 per $1,000 (1.5%) on the portion exceeding $50,000.
The executor must provide proper accounting, in Court format, to beneficiaries in a timely manner. Note, however, that as a general rule the executor is not obliged to provide a) 'minute by minute' on-going reporting to beneficiaries, or b) all backup documentation (as in photocopies of expenses etc.
The normal fee for an executor of a will in Canada is typically between 3% and 5% of the estate's gross value, depending on the complexity of the estate and the responsibilities involved.
An executor cannot use estate assets for personal gain, alter the will's instructions, favor certain beneficiaries, hide information from heirs, or distribute assets prematurely; they must act according to the will's terms and their fiduciary duty, which means prioritizing the estate's and beneficiaries' interests over their own. Violations can lead to personal liability, court removal, or even criminal charges, notes YouTube videos by All About Probate and RMO Lawyers https://www.youtube.com/watch?v=vn2XA61Bp6k,.
As an executor, you can claim reimbursement for necessary estate administration expenses, including funeral costs, legal/accounting/appraisal fees, court costs, property maintenance (utilities, insurance, repairs), taxes, and travel expenses related to estate business, provided you have meticulous records and receipts, as these costs are paid by the estate's funds, not personally. You must detail and get court approval for reimbursement if using personal funds.
If I Appoint My Solicitor As The Sole Executor, Is There A Charge For This? Yes, the solicitor is allowed to charge reasonable costs for acting as an executor. The usual charges are between 1½ to 2½% of the estate and are paid from the estate at the end of the administration.
Generally speaking, a total of around five percent of the estate's value (the gross capital value of the estate) is considered “reasonable”. However, unless a specific fee is agreed upon in writing with the beneficiaries, any fees paid to an executor must be accounted for.