Also, be wary of executor who list as a disbursement the fees of a professional, such as a lawyer or an accountant, and yet seek the maximum fees for themselves: can you spell double-dipping? this procedure. It is, however, not a rule but a basis upon which a judge can take consideration when fixing compensation. Finally, a will writer may choose to indicate the executor will be compensated in accordance with state law, or, if they remain silent on the issue, state law prevails. DUTIES OF AN EXECUTOR. Court costs for Letters Probate or Letters of Administration are based on a percentage of the value of the estate - .7% or $7 per $1,000 of the value of the estate. Saskatchewan legal fees for an estate are prescribed by court rules and vary depending upon the value of the estate. The rules simply provide that, upon a passing of accounts, the court may fix the compensation or allowance to be made to the executor, administrator, or trustee under a will for the care, pains, trouble and time expended in and about the estate or trust. Asked by Wiki User. Things become more complex. For more information, see "Employment by a trustee" in Chapter 1 of the T4001, Employers' Guide - Payroll Deductions and Remittances. Sometimes, personal executors won’t. "It can readily be recognized that, depending upon the idiosyncrasies of the particular estate, the care, pains and Every Province and Territory in Canada has its own formula for calculating the probate fees payable. The package can only be used when there is a Will that names an Executor … Nothing in section 88 ... applies in any case in which the allowance is set by the instrument creating the trust.". Consider these words adopted by the Manitoba Court of Queen's Bench in Re Lloyd's Estate: "Each estate must be considered individually, as the work involved in administration varies to a great extent and depends upon the matters to be considered. Unfortunately, many personal representatives put forward a 5% fee where they are not otherwise entitled to it. But he doesn’t advise that. Arrange for the executor of your estate to be paid for their services with this Executor Fee Agreement. “It’s a difficult, complex job. Co-Executors Share Fees As the executor, you must report these fees on a T4 slip. In addition, the law changes rapidly and sometimes with little notice so from time to time, an article may not be up to date. How two advisors are riding out the Covid-19 storm - and gaining clients. Saskatchewan Trustee Act, §52 ("... reasonable allowance for administration of an estate..."). M-062518-2014 Page 5 Q. But if not, as is often the case, the executors and beneficiaries need to look at their statute books for guidance. var CurrentYear = new Date().getFullYear() “It usually only becomes a problem if beneficiaries are feuding,” Wilson says. 9 10 11. If the estate requires the executor to draw upon special skills or abilities, he gets more compensation. It is said further that increasingly in this Province a practice has developed in the Surrogate Courts of fixing executor's compensation by the application, arbitrarily as it were, of customary percentages to the probate value of the estate under consideration, and that the compensation here under consideration and as fixed by the learned Surrogate Judge is a glaring example of the fallacy of By law, testators are entitled to fair and reasonable compensation, to be determined after duties have been fulfilled. While executors are entitled to be paid in all provinces, most only require that compensation be “fair and reasonable.” Others outline a range of 3% to 5% of an estate’s assets, based on five factors courts have historically considered (see “Five factors,” below). It is general practice to charge fees based on the value of the estate as well as earnings in the estate. He seeks a management fee for a period of ten and one-half years, which includes approximately three and one-half years after the estate should have been distributed. Unless, therefore, an executor or trustee could bring himself within the scope of (the estate administration statute), or could show some agreement, he could not recover compensation.". However, the presumption has been taken very lightly by the courts and is quickly displaced. However, “The percentages are guidelines,” Junkin says. "Whatever practice, if any, with regard to the application of arbitrary or customary percentages may have developed, it should be said at once with respect to this instant appeal, as well as with respect to the compensation of executors and trustees generally, that the guiding principle as set out in (trustee statute) itself must never be lost sight of and that any practice or method by which such compensation is to be determined must always be applied with that statutory provision strictly in mind.... "If these statutory provisions are properly borne in mind, then in many instances the proper compensation may well be reflected by the allowance of percentages, but the particular percentages applied, or any percentages, are not to be regarded as of paramount importance; they should be employed only as a rough guide to assist in the computation of what may be considered a fair and reasonable allowance; the words of the statute override everything else and that fair and reasonable allowance is for the actual care, pains and trouble, and time expended. In Canada Permanent Trust, Justice Locke adopted these words: "[T]here is a presumption that when a legacy or annuity is left to an executor, it is intended to be in lieu of the compensation to which he would otherwise be entitled. Unless otherwise noted, this article was written by Lloyd Duhaime, Barrister, Solicitor, Attorney and Lawyer (and Notary Public!). Canadian Probate Fee Calculator Probate fees (or estate administration tax) is calculated on the total value, in Canadian dollars, of a deceased person's estate. James Dolan is a Vancouver-based financial writer. In others, while percentages may be of assistance, it would be manifestly unreasonable to apply them slavishly and to do so would © In some estates, indeed perhaps in many, no fairer method can be employed in estimating compensation than by the application of percentages. Thus the presumption does not arise when what is given to the executor is not a legacy or annuity but a share of the residue of the estate; or if the legacy to the executor is to be paid only on the expiration of a life interest. “You’re guessing at what might have to be done,” he says. Can only be used when there is no tariff under the rules for the compensation to be determined after have! Two pre-conditions for payment of remuneration to an executor 18, 2010 Last:. 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