PASSING OF ACCOUNTS

Passing of accounts is a court-supervised process where an estate trustee — also called an executor — formally presents a complete financial record of how they managed the estate.

Every dollar received, every expense paid, every fee charged, and every distribution made must be accounted for and approved by the court.

It is the legal mechanism that holds estate trustees accountable. Without it, beneficiaries have no guaranteed way to verify that the estate was managed honestly and competently.

When To Pass Accounts

Voluntarily: an estate trustee who wants formal court approval and protection from future liability can apply on their own initiative. Once the court approves the accounts, the trustee is shielded from claims relating to the decisions reflected in those accounts.

By court order: a beneficiary, co-trustee, or creditor who is unhappy with how the estate was managed — or simply wants transparency — can apply to compel the trustee to pass their accounts. Courts regularly grant these applications when beneficiaries have legitimate concerns.

Passing of accounts is most commonly sought when:

The estate has been open for an unusually long time with no explanation.
Beneficiaries have been kept in the dark about the estate’s finances.
The trustee’s compensation appears excessive or unjustified.
Assets appear to be missing, undervalued, or improperly sold.
There are unexplained expenses or suspicious disbursements.
A beneficiary simply wants the comfort of court-approved accounts before releasing the trustee from liability.

Detailed Accounting Required

The estate trustee must prepare a formal, detailed set of accounts covering:

Assets at the date of death: a complete inventory of everything the deceased owned and its value at the time of death.

All receipts: every amount collected, every asset sold, every investment liquidated, and every debt repaid to the estate with supporting documentation.

All disbursements: every expense paid, every debt settled, every tax filing made, and every professional fee charged — again with full documentation.

Trustee compensation: the amount the trustee is claiming for their own services, which must be reasonable and justified by the complexity and value of the estate.

Proposed distribution: how the remaining estate assets are to be distributed among the beneficiaries.

Vague, incomplete, or poorly documented accounts will face scrutiny, both from beneficiaries and from the court.

How We Help

Step 1: We assess your situation. Whether you are a beneficiary seeking accountability or a trustee seeking approval, we listen carefully to where things stand and give you an honest picture of what the process involves.

Step 2: We review the accounts. If you are a beneficiary, we go through the accounts in detail, looking for excessive compensation, questionable disbursements, missing assets, and anything that does not add up. If you are a trustee, we help you prepare accounts that are complete, accurate, and ready to withstand scrutiny.

Step 3: We file the objections. If the accounts reveal problems, we prepare a formal Notice of Objection setting out exactly what is being challenged and why.

Step 4: We present your case. Whether the matter resolves through negotiation or requires a hearing before a judge, we present your position clearly and persuasively.

Frequently Asked Questions

Can I demand a passing of accounts without going to court?
You can request one informally — but if the trustee refuses, a court application is necessary. Many trustees cooperate once they understand a court application is coming. We often resolve these situations with a formal demand letter before litigation becomes necessary.
What can I actually challenge in the accounts?
Almost anything that appears unreasonable, unjustified, or harmful to the estate — excessive trustee compensation, suspicious expenses, assets sold below market value, investments that were mismanaged, or distributions that don't match the will. The court has broad discretion to reduce or disallow items it finds improper.
What if the trustee already distributed the estate?
A passing of accounts can still be sought even after distribution. If the accounts reveal improper conduct, the trustee can be held personally liable for losses caused to the estate. Distribution does not end accountability.
Does the trustee pay for the passing of accounts?
Generally, the costs of a passing of accounts are paid from the estate — not personally by the trustee. However, where a trustee has acted improperly, the court can order them to bear costs personally.

Contact Pinto Shekib LLP, Your Toronto Estates Litigation Lawyers

Call 416.901.9984 or email info@pintoshekib.ca for a confidential consultation.