Passing of Accounts in Estate Administration

Written By Tyler Langdon

When a person passes away, the executor or estate trustee is responsible for managing the estate, paying debts, and distributing assets to beneficiaries. As part of this process, the executor may be required to complete a Passing of Accounts.

A Passing of Accounts is a court-supervised review of an executor's financial management of an estate. It provides transparency and accountability, allowing beneficiaries and other interested parties to review how estate funds have been handled.

While this process often occurs after the estate has been administered and distributions have been made, beneficiaries can also ask the court to order a Passing of Accounts if they have concerns about how the estate is being managed.

Why Is a Passing of Accounts Important?

A Passing of Accounts serves several important purposes:

  • Transparency – Beneficiaries can review the executor's handling of estate assets and finances.

  • Accountability – Executors must demonstrate that they have fulfilled their duties properly.

  • Court Oversight – The court reviews the administration of the estate and can address any concerns or disputes.

  • Protection for Executors – Court approval of the accounts can provide protection from future claims regarding actions that were properly disclosed and approved.

What Information Is Included?

The accounts presented to the court typically include:

  • A detailed record of all estate income and expenses

  • Information about assets received and sold

  • Details of distributions made to beneficiaries

  • Executor compensation, if claimed

  • Supporting documentation, such as:

    • Bank statements

    • Receipts

    • Invoices

    • Financial records

The Passing of Accounts Process

The process generally involves the following steps:

1. Preparation of Estate Accounts

The executor prepares a complete accounting of all financial transactions relating to the estate.

2. Filing with the Court

The accounts are filed with the probate court and provided to beneficiaries and other interested parties.

3. Review and Objections

Beneficiaries have the opportunity to review the accounts, ask questions, and raise objections if they believe there are issues with the administration of the estate.

4. Court Approval

If there are no objections, the court will typically approve the accounts. If concerns or disputes exist, the court may hold a hearing and make recommendations or orders regarding the estate's administration.

What Happens If Problems Are Found?

Executors and estate trustees have a legal duty to act in the best interests of the estate and its beneficiaries.

If the court determines that an executor has failed to properly carry out those duties and the estate has suffered losses as a result, the executor may be held personally liable for those losses.

A Passing of Accounts provides beneficiaries with the benefit of independent court scrutiny of the estate's management and can help ensure the estate has been administered properly and fairly.

Need Advice About an Estate?

If you have concerns about how an estate is being managed, or if you are an executor seeking guidance regarding a Passing of Accounts in New Brunswick or Ontario, our team can help.

Contact us today at 506-497-2560 to discuss your situation.

Tyler Langdon