Executor compensation calculator
Canadian executor compensation typically lands around 5% of the estate value, broken down across capital and revenue categories under provincial Trustee Acts. This calculator estimates the total based on estate size, administration period, and complexity.
Breakdown
- 1.Capital compensation (5% of $750,000): $37,500
- 2.Revenue compensation (10% of $25,000 estate income): $2,500
- 3.Care-and-management (0.4%/year × 15/12 months × $750,000): $3,750
- 4.Total: $43,750 (5.83% of estate)
Compensation rates follow provincial Trustee Acts and the factors from Toronto General Trusts Corp. v. Central Ontario Railway (1905). The court can vary the amount based on size, complexity, time spent, skill required, and results achieved. Many family-member executors waive compensation on smaller estates.
Figures shown are approximate, calculated from current publicly-available statutes and standard formulas. Final amounts depend on your specific circumstances — assets in your name versus jointly held, beneficiary designations, debts, province-specific exemptions, and applicable tax credits. For numbers you can act on, a Canadian accountant or licenced estate planner can verify against your actual situation.
Frequently asked questions
How much does an executor get paid in Canada?
Roughly 5% of the estate value is the typical aggregate — broken down as ~2.5% on capital receipts, ~2.5% on capital disbursements, ~5% on revenue (income earned during administration) for both receipts and disbursements, plus a 0.4% annual care-and-management fee on assets held longer than a year. The actual amount can be adjusted up or down by the court based on complexity, time, and results.
Is executor compensation taxable?
Yes. Executor compensation is taxable income to the executor in the year received, reported on their personal tax return. Family-member executors who don't need the income often waive compensation on smaller estates to keep more of the estate flowing to beneficiaries — at the cost of giving up legally-owed payment for their time.
Can beneficiaries challenge executor compensation?
Yes. Beneficiaries can object to the proposed compensation and ask the court to review it through a passing-of-accounts application. Courts consider the size of estate, the complexity, time actually spent, skill required, and results achieved (the Toronto General Trusts factors). For most clean estates, courts uphold the standard rates.
What's a care-and-management fee?
An additional fee charged annually (typically 0.4%) on assets held by the executor for extended administration. Common in estates with property, business interests, or ongoing trust provisions that aren't distributed immediately. It's compensation for the executor's continued attention to estate assets over time.
Can a trust company executor charge more?
Yes. Trust companies typically have published fee schedules that may exceed the standard 5% guideline, particularly for complex estates. The trade-off is professional administration, insurance coverage, and absorption of the time commitment. For substantial estates with complexity, the higher fee is often justified by the lower risk and faster administration.
Does the will set the compensation?
It can. A will can specify a fixed amount or a different percentage than the standard guideline. The testator-set compensation generally controls unless it's clearly inadequate or excessive in the circumstances. Many wills are silent on the question, defaulting to the standard provincial Trustee Act guideline.