You've Been Named Executor of an Ontario Estate — Now What? |
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Being named someone's executor is a quiet vote of confidence. It usually means a family member or close friend trusted you, above everyone else, to carry out their final wishes. It's also a real job — one that comes with legal duties, firm deadlines, and, if things go wrong, personal responsibility.
If you've just learned you're an executor and you're not sure where to begin, you're in good company. Most people take this on once or twice in a lifetime, with no training and while grieving. Here's a plain-language guide to the first steps and the pitfalls worth knowing about from the start. |
(A quick note on wording: in Ontario, the person who administers an estate is officially called the estate trustee. Most people still say "executor," and we'll use the two interchangeably here.)
First Things First
Before you dive into the day-to-day of administering the estate, it's worth looking into executor liability insurance (sometimes called estate trustee liability insurance). Because an executor can be held personally responsible even for honest mistakes, this coverage steps in to pay legal defence costs and damages if a beneficiary or creditor later brings a claim against you. The catch is timing: a policy has to be arranged early — ideally within the first few weeks — because you can't buy one once a dispute is already brewing, much like you can't insure a house that's already on fire. Premiums are modest next to the risk (a three-year policy on a roughly $1-million estate often runs around $2,000, scaling with the size of the estate (as of July 2026)), the cost can usually be treated as an estate expense rather than coming out of your own pocket, and not every estate will qualify — all the more reason to ask about it right at the start.
Beyond that, a handful of practical steps matter most in the early days:
What You've Actually Agreed To Do
Strip away the legal language, and an executor's job is three things: gather the deceased's assets, pay their debts and taxes, and distribute what's left according to the will. Throughout, you act as a fiduciary — a legal term meaning you're bound to act honestly, carefully, and in the best interests of the estate and its beneficiaries, not your own. That standard is the thread running through everything else here.
Do You Need Probate?
"Probate" is the process of getting the court to confirm the will is valid and that you have the authority to act. In Ontario, the document you receive is called a Certificate of Appointment of Estate Trustee. Banks, investment firms, and the land registry office often won't release assets or transfer property without it.
Not every estate needs probate. It often depends on what the person owned and how it was held:
The Tax Side (and the deadline that trips people up)
Two tax realities to plan for:
Estate Administration Tax — often called probate fees. In Ontario, there's no tax on the first $50,000 of the estate, and $15 per $1,000 (1.5%) on everything above that. On a $500,000 estate, for example, that works out to $6,750. The tax is paid by the estate when you apply for the certificate.
The deceased's taxes — you're responsible for filing their final income tax return, and sometimes additional estate returns. And once a certificate is issued, you must file an Estate Information Return with the Ministry of Finance within 180 days — a deadline that's easy to miss and carries penalties.
Here's the one that surprises people most: before you distribute the estate to beneficiaries, you should obtain a clearance certificate from the Canada Revenue Agency confirming all taxes are paid. Skip this step, hand out the money, and later discover the estate owed taxes — and you can be held personally responsible for the shortfall. That's not a hypothetical; it's one of the most common ways well-meaning executors get burned.
Your Personal Liability — The Part Nobody Warns You About
This is worth saying plainly: as estate trustee, you can be held personally liable if the estate is mishandled. The most common triggers are:
Common Mistakes to Avoid
You Don't Have to Figure it out Alone
Settling an estate touches law, taxes, and investments all at once, usually at an emotional time. That's exactly why we have a Certified Executor Advisor on our team — someone who can walk you through the financial side of the role, help you stay on top of the deadlines, and coordinate with your lawyer and accountant so nothing falls through the cracks.
If you've been named an executor and aren't sure where to start, come in and talk it through with us. Sometimes an hour of clear guidance at the beginning saves months of stress down the road.
This article is for general information only and does not constitute individual financial, tax or legal advice. Estate administration can be complex, and the right steps depend on your specific circumstances — please consult a qualified lawyer, accountant or advisor.
First Things First
Before you dive into the day-to-day of administering the estate, it's worth looking into executor liability insurance (sometimes called estate trustee liability insurance). Because an executor can be held personally responsible even for honest mistakes, this coverage steps in to pay legal defence costs and damages if a beneficiary or creditor later brings a claim against you. The catch is timing: a policy has to be arranged early — ideally within the first few weeks — because you can't buy one once a dispute is already brewing, much like you can't insure a house that's already on fire. Premiums are modest next to the risk (a three-year policy on a roughly $1-million estate often runs around $2,000, scaling with the size of the estate (as of July 2026)), the cost can usually be treated as an estate expense rather than coming out of your own pocket, and not every estate will qualify — all the more reason to ask about it right at the start.
Beyond that, a handful of practical steps matter most in the early days:
- Find the will. Check safes, filing cabinets, safety deposit boxes, and with the deceased's lawyer. You'll need the original signed will — not a photocopy.
- Check the will before the funeral. It may set out wishes for burial, cremation, or a service. The funeral home will provide a statement of death; you'll also want to order several copies of the official death certificate, since institutions will ask for proof.
- Secure everything. Lock up the home, safeguard valuables, keep property and vehicles insured, and redirect the mail. An empty house and an unattended estate are vulnerable.
- Don't rush to hand anything out. It's natural for family to ask about keepsakes or money right away. Resist distributing anything until you understand the full picture — debts and taxes come before inheritances, and early gifts can come back to haunt you (more on that below).
What You've Actually Agreed To Do
Strip away the legal language, and an executor's job is three things: gather the deceased's assets, pay their debts and taxes, and distribute what's left according to the will. Throughout, you act as a fiduciary — a legal term meaning you're bound to act honestly, carefully, and in the best interests of the estate and its beneficiaries, not your own. That standard is the thread running through everything else here.
Do You Need Probate?
"Probate" is the process of getting the court to confirm the will is valid and that you have the authority to act. In Ontario, the document you receive is called a Certificate of Appointment of Estate Trustee. Banks, investment firms, and the land registry office often won't release assets or transfer property without it.
Not every estate needs probate. It often depends on what the person owned and how it was held:
- Assets that usually bypass probate: anything with a named beneficiary (RRSPs, RRIFs, TFSAs, life insurance) and property held jointly with right of survivorship, which passes directly to the surviving owner.
- Assets that usually require it: real estate owned in the deceased's name alone, and bank or investment accounts without a named beneficiary.
The Tax Side (and the deadline that trips people up)
Two tax realities to plan for:
Estate Administration Tax — often called probate fees. In Ontario, there's no tax on the first $50,000 of the estate, and $15 per $1,000 (1.5%) on everything above that. On a $500,000 estate, for example, that works out to $6,750. The tax is paid by the estate when you apply for the certificate.
The deceased's taxes — you're responsible for filing their final income tax return, and sometimes additional estate returns. And once a certificate is issued, you must file an Estate Information Return with the Ministry of Finance within 180 days — a deadline that's easy to miss and carries penalties.
Here's the one that surprises people most: before you distribute the estate to beneficiaries, you should obtain a clearance certificate from the Canada Revenue Agency confirming all taxes are paid. Skip this step, hand out the money, and later discover the estate owed taxes — and you can be held personally responsible for the shortfall. That's not a hypothetical; it's one of the most common ways well-meaning executors get burned.
Your Personal Liability — The Part Nobody Warns You About
This is worth saying plainly: as estate trustee, you can be held personally liable if the estate is mishandled. The most common triggers are:
- Distributing to beneficiaries before debts, taxes, and creditors are paid
- Paying out without a CRA clearance certificate
- Poor or missing records
- Failing to value assets properly as of the date of death
Common Mistakes to Avoid
- Rushing the distribution. Executors traditionally have around a year — the "executor's year" — to settle an estate, and most take six to twelve months or more. There's no prize for speed.
- Mixing estate money with your own. Open a separate estate bank account and run everything through it. Never use personal accounts.
- Forgetting you're entitled to compensation. Executors can be paid for their work — Ontario courts are guided by a rule of thumb of roughly 5% of the estate, subject to what's reasonable. You're not obligated to waive it.
- Going silent with beneficiaries. Most estate disputes are really communication disputes. Keep beneficiaries reasonably informed and you'll avoid a lot of friction.
- Trying to do all of it alone. Between the legal, tax, and financial pieces, most executors lean on professionals — and are glad they did.
You Don't Have to Figure it out Alone
Settling an estate touches law, taxes, and investments all at once, usually at an emotional time. That's exactly why we have a Certified Executor Advisor on our team — someone who can walk you through the financial side of the role, help you stay on top of the deadlines, and coordinate with your lawyer and accountant so nothing falls through the cracks.
If you've been named an executor and aren't sure where to start, come in and talk it through with us. Sometimes an hour of clear guidance at the beginning saves months of stress down the road.
This article is for general information only and does not constitute individual financial, tax or legal advice. Estate administration can be complex, and the right steps depend on your specific circumstances — please consult a qualified lawyer, accountant or advisor.
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Article written in 2026
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