Acting as an executor in British Columbia can involve months of careful work: locating assets, communicating with beneficiaries, paying debts, preparing tax filings, and distributing the estate. A common question is whether the executor may be paid, and if so, how the amount is determined. The answer depends on the will, the work performed, the circumstances of the estate, and the applicable law. There is no automatic flat fee that applies to every estate.
This overview is general information for Surrey and other BC residents. Every estate is different. For help with an estate administration or a disagreement about compensation, see Law Boutique’s probate and estate administration services or wills and estates services.
Can an executor be paid in BC?
An executor, also called a personal representative, may be entitled to remuneration for work in administering an estate. The will may state how compensation is to be calculated or set a specific amount. If the will does not settle the amount, the executor’s remuneration may need to be agreed with the beneficiaries or determined through the estate accounting process, including by the court where appropriate.
The BC Trustee Act addresses remuneration for executors and trustees. The statute provides a maximum framework, not an automatic entitlement to the maximum. The amount allowed in a particular estate depends on the relevant facts and the proper approval process.
Is there a standard percentage?
People often hear that executor compensation is calculated as a percentage of the estate. That is an oversimplification. The statutory maximum is not a standard tariff that every executor can simply deduct. The executor should be able to explain the work performed and the basis for the amount claimed. A percentage calculation may be one part of the analysis, but it does not replace consideration of the circumstances or the requirement for proper approval.
Care and management compensation may also be treated separately from compensation for administering the estate. Whether it is available, and in what amount, depends on the statutory rules and the estate’s circumstances. Executors should not assume that every possible fee category applies to their situation.
What factors can affect the amount?
The court may consider the size and nature of the estate, the amount of time and attention reasonably required, the skill and responsibility involved, and the quality of the executor’s work. The complexity of the assets and the length of the administration may also be relevant. For example, an estate involving a home, private company interests, tax issues, or a dispute may require different work from an estate with a small number of straightforward assets.
The focus is on the actual administration and the responsibilities carried out. The value of the estate alone does not tell the whole story. Nor does a difficult relationship with a beneficiary, by itself, establish that a higher fee is justified. A clear record of work and decisions can help explain the compensation claimed.
What work should an executor keep track of?
Executors in Surrey and throughout BC should keep organized records from the beginning. Useful records may include:
- the date, nature, and approximate time spent on significant tasks;
- correspondence with beneficiaries, banks, insurers, and government agencies;
- records of asset searches, valuations, and steps taken to secure estate property;
- invoices, receipts, bank statements, and a clear ledger of estate transactions;
- tax, probate, sale, and distribution documents; and
- notes explaining important decisions, delays, and work completed by professionals.
Good records are not just about compensation. They help the executor account for estate funds, respond to reasonable questions, and show how the administration progressed. Estate money should be kept separate from personal funds, and payments should be supported by proper documentation.
How is executor compensation approved?
The will may provide directions, but executors should review the wording carefully and follow the applicable process. In many administrations, compensation is addressed as part of the executor’s accounts. Beneficiaries may be asked to approve the accounts and proposed remuneration. If they do not agree, the issue may require a court review or another resolution process depending on the circumstances.
An executor should not treat silence as approval or assume that a proposed fee is settled simply because it has been included in an accounting. Beneficiaries should receive enough information to understand the estate transactions and the proposed compensation. When there is disagreement, obtaining legal guidance early may help clarify what records are needed and what process applies.
What can beneficiaries do if they disagree?
A beneficiary who has concerns can ask for a clear estate accounting and an explanation of the compensation claimed. It is useful to identify the specific concern, such as missing supporting records, unexplained expenses, a calculation that does not match the will, or a concern about the executor’s conduct. A focused written request is often more productive than a general objection.
If the concern is not resolved, the beneficiary may need to consider the formal options available in the circumstances. The appropriate route can depend on whether the estate accounts are being presented for approval, whether a court process is already underway, and the nature of the dispute. Deadlines and procedural requirements may apply, so avoid waiting until a distribution or accounting step has passed without understanding the consequences.
Executor compensation is also distinct from reimbursement of proper expenses. An executor may seek repayment for reasonable out-of-pocket costs paid on behalf of the estate, but those expenses should be documented and connected to estate administration. Compensation pays for the executor’s services; expense reimbursement repays qualifying costs. They should be recorded separately.
When should an executor or beneficiary get help?
Consider getting help where the will’s compensation clause is unclear, the estate has complex assets, the accounts are disputed, beneficiaries cannot agree, or the executor is unsure how to proceed with a proposed payment. Early review can help identify the relevant documents and prevent an avoidable dispute from becoming more difficult to resolve.
Law Boutique assists clients with probate and estate administration matters in Surrey and the Lower Mainland. Learn more about probate services and wills and estates. You can also read our related article, How to Choose an Executor for Your BC Estate.
Key points
Executor compensation in BC is not automatically the maximum amount or a universal flat percentage. The will, the applicable statutory framework, the work performed, and the approval process all matter. Executors should keep detailed records and provide a transparent accounting. Beneficiaries with concerns should ask specific questions and understand the relevant process before the estate is distributed.
For help with an estate administration in Surrey or the Lower Mainland, book a consultation with Law Boutique.