Passing of Accounts

Experienced Toronto Estate Lawyers Advising on Passing of Accounts

Estate trusteesexecutorsattorneys for property, and guardians for property, have a number of obligations to the estate they are responsible for administering. Among these obligations is the duty to maintain the estate and its assets and keep accurate records of such maintenance.  At any time, any beneficiary can request a “passing of accounts”, at which point any records must be surrendered to the court for approval over the way in which the estate has been managed. Other parties that can request a passing of accounts include a guardian, an attorney, the Office of the Children’s Lawyer, the Public Guardian and Trustee, as well as the estate trustee themselves.

This can be a very technical process requiring advice from a lawyer with specialized experience. The knowledgeable estate litigation team at Eisen Law in Toronto has extensive experience in this area and can help guide you through this complex procedure. We assist in a number of areas including:

  • Preparing and filing the necessary documents;
  • Ensuring accounts are in proper condition;
  • Serving all required documents on all required parties;
  • Responding to objections;
  • Reviewing accounts and providing advice on potential objections;
  • Filing a Notice of Objections if necessary;
  • Representing you at any hearing.

Passing of Accounts in Ontario

The passing of accounts is a formal and technical process governed by various pieces of legislation including the Trustee Act, the Substitute Decisions Act, as well as case law.

The application to pass accounts must be served on all individuals with an interest in the estate, and those individuals can then file any objections they may have with the way in which the estate is administered including:

  • Disagreement with transactions and decisions made;
  • Disagreement with the amount of compensation being claimed by a trustee, attorney, or guardian;
  • Disagreement over whether all property has been accounted for.

The court then has the discretion to grant or refuse an order based on a number of factors including:

  • The nature and size of the estate;
  • How complex the administration of the estate is;
  • Whether there has been any litigation surrounding the estate up to that point in time;
  • The terms in the will, trust, or other estate document.

If the court does decide to review the accounts, it will might:

  • Approve the accounts;
  • Temporarily suspend or fully terminate the power of attorney or guardianship;
  • Grant or adjust the compensation of the trustee, guardian, or attorney;
  • Order that money taken by a trustee, guardian, or attorney be repaid.

All of these potential consequences can have a serious impact on the estate and can require advice from a lawyer with the necessary technical knowledge of this area of law.

Contact the Toronto Estate Lawyers at Eisen Law for Assistance with Passing of Accounts

At Eisen Law, our knowledgeable and experienced lawyers can help you understand the technical and complex process of passing of accounts and ensure that the estate in question is in order.  We offer free initial consultations and will do our best to ensure you can easily access the legal advice that you need. Call us at 416-591-9997 or contact us online if you need assistance in this specific area of estate litigation.