Estate Administration Estate Accounts What is Required


Advance
 

Prepared by Norman Pickell, a lawyer based in Goderich, Ontario.
 

Pursuant to the Laws and Court Rules in Ontario, Estate Trustees (formerly known as "Executors") are required to keep proper and accurate records in the handling of the assets of an Estate. Rule 74.17 requires those Estate Accounts to include the following:

1. A list of the assets as of the date of death (including accrued interest on investments).

2. That list of assets must be cross-referenced to entries in the accounts that show the disposition or partial disposition of any of the assets.

3. A list of all money received, whether as Capital Receipts or Revenue Receipts, including dates, particulars and amounts. (In some cases, it is a requirement to have separate listings showing Capital Receipts on one list and Revenue Receipts on another. In any event, separate listings are very helpful when the time comes to complete the income tax and trust returns.)

4. A list of all money paid out, whether as Capital Disbursements or Revenue Disbursements, including dates, particulars and amounts. (Again, in some cases, it is necessary to have separate listings showing Capital Disbursements on one list and Revenue Disbursements on another.)

5. All money received by the Estate Trustee, whether in cash, cheque or some other form, must be deposited into an Estate bank account.

6. All payments out of the Estate should be by way of cheque.

7. All receipts need to be kept to prove that the payments were necessary.

8. If the Estate Trustee makes investments, a list of investments needs to be kept separate from the above-mentioned lists.

9. If there is a list of investments, there must also be a list of the following:
i detailed entries showing all money paid out to purchase investments;
ii detailed entries showing all money received by way of repayments or realization on the investments, in whole or in part;
iii the balance of all of the investments in the Estate at the closing date of the accounts.

10. A statement of all of the assets in the Estate that are unrealized at the closing date of the accounts.

11. A statement of all of the liabilities of the Estate, contingent or otherwise, at the closing date of the accounts.

12. A statement of the compensation claimed by the Estate Trustee, including how it was calculated.

13. The Estate Accounts will have to be approved by all of the residual beneficiaries of the Estate. Otherwise, a Judge will have to scrutinize and approve them.

14. It is preferable to have the Estate Accounts in a typed format, since they will have to be photocopied and sometimes circulated to many different persons and agencies. (In fact, if the Estate Accounts are required to go before a Judge for scrutiny - and this is something that we will not know until near the end of the administration of the Estate, they will have to be typed.)


Some law firms, including Norman Pickell's, have a special computer program that can assist the Estate Trustee in the preparation of the Estate Accounts.

 


 

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Norman B. Pickell  Lawyer - Mediator - Arbitrator  58 South Street, Goderich, Ontario N7A 3L5  Telephone (519) 524-8335   Fax (519) 524-1530