Fiduciary duties. 

An estate trustee is a fiduciary who owes fiduciary duties to the beneficiaries of the estate.  Many specific duties, including the following flow from this general principle.

Act in the best interests of beneficiaries.

An estate trustee is not obliged to take direction/instruction from the beneficiaries, nor required to provide on-going reporting, nor even consult with the beneficiaries (although regular reporting and consultation are often helpful).  Ultimately, the estate trustee has the authority and duty to act, unilaterally if necessary or if they so choose, provided their actions are demonstrably in the best interests of the beneficiaries.

Act or renounce. 

A person named as executor in a will should start to act or renounce within a reasonable period of time.  Where there is no will, there is no preferential ‘entitlement’ to be the estate trustee – only an order of preference that the Court will consider (spouse, then next of kin).

Administer in a reasonable period of time.

All of the following should be done ‘in a reasonable period of time’:

• Organize the burial/cremation and funeral.
• File a probate application with the Court.
• Gather and protect the assets.
• Pay the debts.
• Distribute the estate to the beneficiaries.

Debts.

An estate trustee has a duty to pay all debts of the deceased and the estate. Usually, this means identifying and paying all debts before any distribution to the beneficiaries.

Taxes. 

An estate trustee is obliged to pay all tax debts. Usually, the estate trustee files all outstanding tax returns and pays all assessed taxes.  An estate trustee is not obligated to secure a Clearance Certificate although they often do get one before final distribution to ensure that they have no personal liability for unpaid taxes.  There is rarely a good reason for not making an interim distribution to beneficiaries prior to receipt of the Clearance Certificate.

Account.

The estate trustee should account for the estate to the beneficiaries after a reasonable period of time and/or on completion.  If the beneficiaries and trustee do not agree on the accounts, the estate trustee should go to Court to pass their accounts.  Beneficiaries have a right to court-approved accounts.  The cost of accounting is generally an expense of the estate, not any particular beneficiary.

Reasonable compensation. 

Unless the will provides otherwise, an estate trustee is entitled to be paid at the conclusion of the estate and not before reasonable compensation.  5% is a rough guideline, not an entitlement.  The onus is on the trustee to establish that the compensation that they seek is reasonable and fair.  The estate trustee is also entitled to reimbursement of their reasonable expenses which include fees for reasonable legal, accounting, and realtor services.  Fees paid to third parties to perform the ‘trustee’s work’ should reduce the compensation paid to the trustee.