# Executor's Compensation



## ca5ssivellaun4us (2 mo ago)

I live in the Yukon Territory. Due to the great distance between us and relatives, we are thinking of appointing RBC Wealth Management as executors of our estate. So I realize that the cost of them doing this is about 5%. The question I have is - are the expenses associated with winding up the estate and disbursing the remnants of the estate to the beneficiaries, in addition to that 5% or included in that 5% ?


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## ian (Jun 18, 2016)

We deal with RBC Wealth Management/PHN.

Our understanding is that the expenses are separate from the fee.

it only takes a phone call or an email to confirm.


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## Mukhang pera (Feb 26, 2016)

I agree with Ian, RBC would likely know the answer better than anyone here. 

But I would be surprised if they would agree to include disbursements, which are to some extent an unknown from the start. For example, let's say there's some contest to the will, or requirement for proof in solemn form. Is RBC on the hook for retaining lawyers to act for the estate, to be paid out of their 5%. The 5% might not cover the cost. Is RBC liable to pay in full in any event? If they agree, yes, but I would not expect such agreement. I recognize that lawyers' fees for acting in such matters are usually paid out of the estate, but that follows only is the court orders such payment.


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## ca5ssivellaun4us (2 mo ago)

Thanks for those responses. We don't anticipate any contesting of the will so I don't think we have to worry about excessive lawyers' fees. I just wanted to know the status of expenses and thanks to you, now I know.


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## afulldeck (Mar 28, 2012)

In Ontario, as the executor, I had to send out a register mail asking all parties if they where going to constest the will before disbursement.


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## tony777p (Dec 15, 2021)

afulldeck said:


> In Ontario, as the executor, I had to send out a register mail asking all parties if they where going to constest the will before disbursement.


Doesn't Probate eliminate contesting the will?


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## AltaRed (Jun 8, 2009)

tony777p said:


> Doesn't Probate eliminate contesting the will?


Probate simply validates that the Will presented is the proper one and confirms the Executor. The Will can be contested at various stages per https://www.legalline.ca/legal-answers/contesting-or-challenging-a-will/


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## OptsyEagle (Nov 29, 2009)

tony777p said:


> Doesn't Probate eliminate contesting the will?


I believe probate just confirms that a particular will is valid and is therefore the one that should be used AND appoints the estate trustees (executors).

As for ensuring the beneficiaries do not intend to contest the will. That can be done at the disbursement meeting itself. Usually you will get the beneficiaries to sign a document where they acknowledgement that they have received everything that they are legally entitled to and that they also release the executors from any future liability. If they don't sign, no one gets anything until they do.


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## afulldeck (Mar 28, 2012)

OptsyEagle said:


> Usually you will get the beneficiaries to sign a document where they acknowledgement that they have received everything that they are legally entitled to and that they also release the executors from any future liability. If they don't sign, no one gets anything until they do.


Yes that is the process I followed. Except since everyone lived in different provinces, so I sent out registered letters detailing the particulars that they could review with their lawyers if they wished. I asked everyone to sign by a particular date or to contest.


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## OptsyEagle (Nov 29, 2009)

afulldeck said:


> Yes that is the process I followed. Except since everyone lived in different provinces, so I sent out registered letters detailing the particulars that they could review with their lawyers if they wished. I asked everyone to sign by a particular date or to contest.


Agreed. I also sent out a copy of the will to the beneficiaries very early, and the financial accounting of the estate showing all the assets, debts, taxes, expenses and how the bequeaths were calculated, before the disbursement meeting. I followed up with emails and since everyone was fine with the accounting of their share the only thing left to do was to have the disbursement meeting and sign the receipt and release documents accordingly.


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## OptsyEagle (Nov 29, 2009)

I will add to the OP's question that there is no doubt that RBC will charge the 5% PLUS every estate expense to the estate before any bequeaths are paid out. If I was the OP I would want to know what those expenses might be. He/she should understand that taxes and legal and probate fees are obvious but you might find that an independent executor may have quite a long list of other internal fees that might get added to the bill. Quite a few he/she may not be aware of or even agree with.


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## gardner (Feb 13, 2014)

Is the fee an executor will charge fixed in the will, or is it subject to change later when the will is actually executed?


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## OptsyEagle (Nov 29, 2009)

gardner said:


> Is the fee an executor will charge fixed in the will, or is it subject to change later when the will is actually executed?


I believe it can be fixed in the will and if not, it is dictated by the various provinces where the deceased resided. In Ontario it is 5% maximum. I think the concern lawyers have against dictating it in the will is if the fee is too low an executor may simply refuse to do the job. That obviously would be a problem.

I think there are two types of executors. One who does it to ensure their bequeaths are done right and/or because they made a solemn oath to the deceased, AND those who mostly want to get paid. The former will usually be happy with 0% and the latter will want the maximum the province will allow. Of course a few of the first group will sometimes ask for money anyway, but that is simply because of greed and some other nonsense that is an unfortuneate characteristic in quite a few people on the planet. They usually feel justified because it is a lot of work. Perhaps more work then they thought when they agreed to it. I know I was quite surprised. 

I will also add that it is usually a lot more work then the person writing the will probably understands, as well, so if you are going to write an executor's fee into your will, please talk to someone who has done this before to understand what you are asking before you decree what you think might be a fair fee.


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## AltaRed (Jun 8, 2009)

In BC, the maximum fee is 5% of the gross value of the estate if the fee has not been established in the Will. The courts will decide IF the beneficiaries cannot collectively agree on the compensation. Note that this is the fee only. Disbursements are in addition to the fee, e.g. accounting, legal, tax filings, portfolio management (not to exceed 0.4% AUM), etc.
How Much Does an Executor Get Paid in British Columbia?


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## ca5ssivellaun4us (2 mo ago)

I am now looking at the Power of Attorney (POA) fee agreement as set out by the trust corporation. They have a - Set Up Fee - and a Fiduciary Services Fee. The first one is quite straightforward. As to the Fiduciary Services Fee, I presume that is in effect only up to the point where the Executor winds up the estate and the beneficiaries have been paid out?


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## AltaRed (Jun 8, 2009)

I don't know your reason to bring up POA agreements/fees as regards Executor compensation. An Executor simply settles the estate (not a POA) but may pay someone for portfolio management of investments until disbursement to beneficiaries. See What estate expenses are tax deductible? which is pretty good at listing potential fees and costs (some of which might be tax deductible to the estate).


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## OptsyEagle (Nov 29, 2009)

The power of attorney ends immediately upon the death of the person in question, so I assume all fees surrounding it would end as well.


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## ca5ssivellaun4us (2 mo ago)

<< I don't know your reason to bring up POA agreements/fees as regards Executor compensation >> Ah ... this is so embarrassing ... I thought that the Executor still required PofA to dispose of the material goods comprising the estate but no - apparently not - I am assuming that Executor, he has the means to do so without an Pof A


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## AltaRed (Jun 8, 2009)

No need to be embarrassed. You would be susprised how many people don't understand POA authority on everything and anything terminates upon date of death. The Executor, upon death and grant of probate (if required) has sole authority to settle the Estate and disburse proceeds according to the terms of the Will. 

You may be confusing POA with Estate Trustee. Estate Trustee vs Executor - What's the Difference? | DLegal Law Office may be helpful in the case where a Will establishes a Trust upon settlement of the Estate for the benefit of beneficiaries.


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