ACCOUNTING DUTIES OF THE EXECUTOR AND TRUSTEE - THE FORM OF THE ACCOUNTS - PART IV
In a recent series of blogs (see our June 14, 15 and 16, 2006 posts), we discussed the form of an executor's or trustee's accounts. In our experience, as complaints against a trustee and/or an executor often stem from this issue, we felt it would be worthwhile to continue to explore this topic.
As we've mentioned in the past, in Ontario, Rule 74.17 of the Rules of Civil Procedure sets out an exact summary of what is expected in regard to the form of the accounts. In particular, it provides as follows:
(1) Estate trustees shall keep accurate records of the assets and transactions in the estate and accounts filed with the Court shall include,
(a) on a first passing of accounts, a statement of the assets at the date of death, cross-referenced to entries in the accounts that show the disposition or partial disposition of the assets;
(b) on any subsequent passing of accounts, a statement of the assets on the date the accounts for the period were opened, cross-referenced to entries in the accounts that show the disposition or partial disposition of the assets, and a statement of the investments, if any, on the date the accounts for the period were opened;
(c) an account of all money received, but excluding investment transactions recorded under clause;
(d) an account of all money disbursed, including payments for trustee's compensation and payments made under a Court order, but excluding investment transactions recorded under clause;(e) where the estate trustee has made investments, an account setting out,
(i) all money paid out to purchase investments,
(ii) all money received by way of repayments or realization on the investments in whole or in part, and
(iii) the balance of all the investments in the estate at the closing date of the accounts;
(f) a statement of all the assets in the estate that are unrealized at the closing date of the accounts;
(g) a statement of all money and investments in the estate at the closing date of the accounts;
(h) a statement of all the liabilities of the estate, contingent or otherwise, at the closing date of the accounts;
(i) a statement of the compensation claimed by the estate trustee and, where the statement of compensation includes a management fee based on the value of the assets of the estate, a statement setting out the method of determining the value of the assets; and
(j) such other statements and information as the Court requires.(2) The accounts required by clauses (1)(c), (d) and (e) shall show the balance forward for each account.
(3) Where a will or trust deals separately with capital and income, the accounts shall be divided to show separately receipts and disbursements in respect of capital and income. In a future blog, we will continue to explore the form of the accounts further.
All the best, Suzana and Ian.
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