Passing of accounts by an estate executor or trustee is an extremely technical process. Court approval may be needed for the executor before they can administer the estate. The executor also has personal liability for any improper conduct related to the management of the estates’ assets.
It is advisable to take advice from experienced Wills and Estate Lawyer who has sufficient knowledge and capability in the estate law.
Support for Attorneys, Executors and Property Guardians
In Ontario, there are various laws which govern the passing of accounts by executors, trustees and fiduciaries. It includes Section 23 of the Trustee Act, Rules of Civil procedure and Section 48 of the Estate Act. Section 42 of the Substitute Decisions Act governs passing of accounts by property guardians and attorneys.
These clauses lay down the standards by which trustees, executors and fiduciaries may receive a court order or voluntarily pass accounts.
Process and Record Keeping
The trustee needs to record and track estate accounts as per the law. In specific circumstances, the trustee can be required to get their accounting approved by the court when the estate beneficiaries are mentally incapable, unascertained, contingent or minors.
Accounts can be assessed when any estate beneficiary challenges the actions of the estate trustee by obtaining a court order. Under these circumstances, the court can order the trustee to pass accounts. Executor’s alleged misconduct can also result in passing of account if one of the parties moves to remove the executor.
Role of the Trustee and Public Guardian
In passing of accounts process, the trustee and The Office of the Public Guardian have a vital role to play. In the absence of suitable individuals, the trustee and The Office of the Public Guardian are entrusted with reviewing accounts.
If mentally incapable beneficiaries or beneficiaries who don’t have any attorney are present, estate trustees can interact with The Office of the Public Guardian. The involvement of estate trustees protects the legal interest of those beneficiaries who do not have any guardians or attorneys.
Getting in touch with capable Wills and Estate Lawyers can help to prepare and file all necessary documentation, ensure accounts are in correct form and the beneficiaries are served with the requisite documentation. They will also attend the hearings and accompany you where you may be required to attend.
Unopposed Passing of Accounts
The formal passing of accounts is not done under certain circumstances when all beneficiaries are competent adults, and no objections are present at their end.
The judge approves the accounts once all the parties have principally agreed to it. The judge does not review accounts.
Trustees and beneficiaries both have certain benefits if passing of accounts happens unopposed. The parties get updates on the estate administration when an unopposed passing of accounts happens. They get to know about unpaid debts and unrealized assets. Independent legal advice can also be obtained by the beneficiaries which assist them in making sure that the estate is being managed responsibly.
When the court approves passing of accounts, the estate administration process undergoes a sense of closure. The trustee is also absolved of future accounting obligations as per the time period covered under the passing of accounts.
How We Can Help
It is recommended to discuss and understand your options with a knowledgeable and experienced Wills and Estate Lawyer. If you wish to discuss passing of accounts or need representation for passing of accounts, please call us today. At Nanda & Associate Lawyers, our experienced Wills and Estate lawyers understand your specific circumstances and provide tailored and customized solutions for each of them.
Our Mississauga Wills and Estate Lawyers are available for a consultation. Feel comfortable interacting with our caring team who speak more than 15 languages like English, French, Spanish, Italian, Portuguese, Albanian, Hindi, Punjabi, Kannada, Telugu, Tamil, Bengali and much more.
