Probate | Passing of Accounts

In a probate proceeding, the “Passing of Accounts” refers to a process where the executor or administrator of an estate presents an account of their administration to the court and interested parties. Not always, but this typically occurs after the executor has settled the estate’s debts and distributed the assets to beneficiaries. There are times, however, where the beneficiaries have questions about how the estate is being managed and, in this set of circumstances, can ask the court to order a Passing of the Accounts.

Key Aspects of Passing of Accounts:

1. Purpose:
   • To provide transparency and accountability regarding the financial management of the estate.
   • To allow beneficiaries and other interested parties to review how funds were handled.
2. Contents:
   • A detailed account of all financial transactions, including income, expenses, and distributions.
   • Documentation or evidence to support the transactions listed (receipts, bank statements, etc.).
3. Process:
   • The executor files the accounts with the probate court.
   • A hearing may be scheduled where interested parties can raise objections or ask questions.
4. Outcome:
   • If there are no objections, the court typically approves the accounts, effectively discharging the executor from further liability for the actions taken.
   • If there are disputes, the court may resolve them, which could result in adjustments to how the estate was managed or distributed.

This is a very brief overview of what a Passing of the Accounts entails. In short, the process provides the beneficiaries of the estate the benefit of court scrutiny of how the estate is being, or has been, managed. If the executors or estate trustees have neglected their duties and the estate suffers losses as a result, the executors or estate trustees can be held personally liable for those losses.

If you have questions about how an estate is being managed in New Brunswick or Ontario call me today at my direct line:

506-496-5872

Grant Edward Rayner B.Comm., LL.B.*

* Grant is a member of the Law Societies in Ontario and New Brunswick and has been in practice since 1985.