This blog post was written by: Alicia Mossington, Estate and Trust Consultant, Scotiatrust London

Estate trustees in Ontario are entitled to be compensated for their work in administering the estate. Understanding estate trustee (“executor”) compensation is important whether you are an executor or are considering who to appoint for your own estate.

 

In Ontario, non-professional executors generally calculate compensation by relying on the guideline of:  2.5% of income and capital receipts plus 2.5% of income and capital disbursements.[1] This guideline results in compensation of approximately 5% of the value of the estate. Professional executors like trust companies may rely on compensation agreements and bespoke formulas.

 

The general guideline should also be assessed in light of what is “fair and reasonable” in each case. The Trustee Act includes additional factors that should be considered when determining what is fair and reasonable:

 

• the size of the estate
• the complexity of the estate
• the time expended on administering the estate
• the skill and ability displayed by the executor
• the results of the administration[2]

 

Executor compensation was considered in the recent case of Forgione v Alonzi[3] in which allegations were made by siblings of the deceased against the estate trustee, Ms. Alonzi. Ms. Alonzi acted as estate trustee for her deceased grandfather Ciriaco Forgione and had also acted as attorney for property during his lifetime. As estate trustee, Ms. Alonzi claimed $474,669.94. She also claimed compensation as attorney for property. In considering the factors for estate trustee compensation outlined above, Mr. Justice Myers noted that:

 

“the magnitude of the estate is the principal driver of the compensation in this case. If there is nothing else, I would be inclined to trim back fees that are based on value without much care, pain, trouble or time committed.”[4]

 

And that “the bulk of Ms. Alonzi’s entitlements to compensation both as attorney and as estate trustee are best considered under the heading “care and management.”

 

Mr. Justice Myers reviewed the work done by Ms. Alonzi, and the behaviour and allegations of her relatives (the applicants and others), and awarded the compensation claimed, also remarking that “it is hard to find a comparable for the care, compassion and bravery demonstrated by Anne-Marie Alonzi and her family toward Mr. Forgione.(…)”[5]

 

The compensation award in Forgione is contrasted by Farmer v Farmer[6], another case considering the reasonableness of executor compensation. Kyrle Blake Farmer served as estate trustee and attorney for property for his aunt Billie Frances Farmer. Kyrle and his brothers Peter Ross (“Ross”) and Robert Eric (“Eric”) were equal beneficiaries under Ms. Farmer’s estate. Ross and Eric brought an application against their brother for an accounting, among other forms of relief. Reviewing the actions of the Kyrle as estate trustee, the application judge found:

 

“ultimately his entire administration of the estate of his aunt, whether as attorney or executor, demonstrates an essentially rapacious approach. He charged his aunt expenses to attend her own funeral. He charged attorney’s fees for money he paid himself. He never visited her without being paid. (…)”

 

The application judge further concluded that the estate trustee was not entitled to compensation due to his dishonest and negligent administration, mishandling of charitable distributions and failure to follow the instructions in the Will.

 

Executor compensation is an important topic to understand, and the rules governing executor compensation apply to lay individuals and professional executors like trust companies. Although some personal executors may opt to forego compensation many wish to be compensated for the considerable time and effort involved. The topic of compensation can lead to disputes among family members and beneficiaries.

 

Choosing the right executor is critical, and executor compensation is just one factor to consider.

 

Thank you for reading.

 

 

[1] Referred to as the “tariff guidelines” as set out in Re Jeffrey Estate (1990) 39 E.T.R. 173 (ONSC) and endorsed by the Ontario Court of Appeal.

[2] Factors also set out in Toronto General Trusts v Central Ontario Railway (1905) 6 O.W.R. 350 (Ont. HC).

[3] 2025 ONSC 4051 (CanLII) and trial decision reported at 2025 ONSC 3393 (CanLII).

[4] See para’s 184-192.

[5] See para’s 199-202.

[6] 2025 ONCA 442.