How can you set Executor fees?

Originally published: March 26, 2022 | Last updated: January 21, 2026

An executor performs significant work administering an estate, from locating assets and paying debts to filing tax returns and distributing inheritances. This work deserves compensation. In Canada, executors are legally entitled to reasonable fees, but the amount depends on what the Will says, provincial guidelines, and the complexity of the estate.

How Much Can an Executor Charge in Canada?

Executor compensation in Canada follows a general guideline of up to 5% of the estate value, but this varies by province and is not automatic:

These are guidelines, not guarantees. If beneficiaries dispute the fees, a court will determine what is “fair and reasonable” based on the specific circumstances.

How Can You Set Executor Fees in Your Will?

The simplest way to avoid fee disputes is to specify executor compensation directly in your Will. You have several options:

Option 1: Fixed amount

Specify a dollar amount: “My executor shall receive $10,000 as compensation for administering my estate.” This provides certainty but may be too low or too high depending on the estate’s complexity at the time of death.

Option 2: Percentage of estate

Specify a percentage: “My executor shall receive 3% of the gross value of my estate as compensation.” This scales with estate size and is the most common approach.

Option 3: Hourly rate

Specify an hourly rate: “My executor shall be compensated at a rate of $50 per hour for time spent administering the estate.” This is fair for complex estates but requires the executor to keep detailed time records.

Option 4: Professional fee schedule

If you appoint a professional executor (trust company or law firm), their standard fee schedule typically applies. Professional fees are generally higher, often 3–5% of estate value plus additional charges for specific services.

Should You Pay Your Executor?

Yes; executor work is substantial and time-consuming. Consider what an executor typically does:

• Locates and secures all estate assets
• Obtains death certificates
• Notifies banks, insurance companies, and government agencies
• Applies for probate (if required)
• Pays outstanding debts and bills
• Files the final tax return (and sometimes multiple years of returns)
• Manages estate property until distribution
• Communicates with beneficiaries
• Distributes assets according to the Will
• Keeps detailed records of all transactions

This work can take 6–18 months for a straightforward estate, and years for a complex one. Failing to compensate your executor can lead to resentment, reluctance to serve, or even the executor renouncing their appointment. See our detailed guide on how to help your executor.

What If the Will Does Not Mention Executor Fees?

If your Will is silent on executor compensation, the executor can still claim fees, but the process is more complicated:

1. The executor can request compensation from the beneficiaries
2. If the beneficiaries agree, no court involvement is needed
3. If the beneficiaries disagree, the executor can apply to the court for a “passing of accounts”, a formal review of the executor’s work and a determination of fair compensation
4. The court will assess fees based on the estate’s size, complexity, the time spent, and the care and responsibility involved

This process is expensive and time-consuming; another reason to specify fees in your Will and avoid the dispute entirely.

Can an Executor Waive Their Fee?

Yes. Many family member executors voluntarily waive their fee, particularly if they are also a beneficiary of the estate. If your spouse or adult child is the executor and also inherits the bulk of the estate, they may choose not to claim a separate fee.

However, even family members should be aware that executor work is substantial. Waiving the fee is a personal choice, not an obligation. If you expect your executor to waive their fee, discuss this with them before finalizing your Will.

Frequently Asked Questions

Can I name an executor and not pay them?

You can specify in your Will that the executor will not receive compensation. However, this may make it difficult to find someone willing to serve, especially for a complex estate. Consider offering at least a modest fee.

Are executor fees taxable?

Yes. Executor fees are considered taxable income and must be reported on the executor’s personal tax return. This is an important consideration when setting fee amounts, the executor keeps less than the gross fee after taxes.

What if I appoint a professional executor?

Professional executors (trust companies, law firms) charge according to their published fee schedules, which are typically higher than what a family member would claim. Fees often include a percentage of estate value plus hourly charges for specific services. Review the fee schedule before appointing a professional executor.

Can beneficiaries challenge executor fees?

Yes. Beneficiaries can challenge executor fees through a court application for passing of accounts. The court will review the executor’s work and determine if the fees claimed are reasonable. Specifying fees in the Will reduces (but does not eliminate) the risk of challenges.

How does LegalWills.ca handle executor fees?

When creating your Will at LegalWills.ca, you can specify executor compensation as part of the guided questionnaire. The system includes appropriate language in your Will based on your chosen fee structure.