Show Me The Money: How Much Should Your Executors And Trustees Be Paid?

Recent news reports concerning the compensation claimed by the executors of the estate of the late Loretta Rogers, matriarch of the telecom Rogers family, one of Canada’s wealthiest, has raised concerns for many, particularly if they have a large estate, on how much their executors can be paid. In the Loretta Rogers estate, the compensation claimed by the 3 executors was reported to be $11M and the value of the estate was approximately $250M. About $10 million was for executor work and $1M for a care and management fee. The claim is now being challenged by beneficiaries of the estate, including Edward Rogers, son of the deceased, as excessive. 

How Much Can Executors and Trustees be Paid?

Under Ontario legislation, there is no fixed rate for what executors and trustees can charge. The Trustee Act allows a court where the will or trust does not fix compensation to determine what is fair and reasonable compensation based on the “care, pains and trouble, and the time expended” in administering an estate or trust.

Over the years, the Ontario court has developed guidelines to determine compensation known as the “unofficial tariff” of 2.5% of receipts and 2.5% of disbursements or 5% of the estate, which many of you may be familiar with.

If compensation is challenged, the court applies a test called the “five factors” to determine whether the percentages described above should be applied. The court will look at:

1. The size of the estate
2. The care and responsibility involved
3. The time expended
4. Skill and ability displayed
5. The degree of success of the administration

Large Estates: Is the Benchmark Amount of 5% too High?

In larger estates, there is an uphill battle created when compensation is not expressly dealt with in the will or trust agreement because the executors and trustees may start with the guideline amount of 5% and the beneficiaries are then put in the position of having to challenge this amount, whether by negotiation or through the court process, resulting in time, expense, ucertainty and sometimes an undesirable result.

The problem is compounded by the fact that there is very little case law in Ontario and elsewhere that deals with compensation in very large estates, creating uncertainty on how a court will deal with a compensation claim by an executor or trustee.

A useful benchmark is to look at how trust companies charge for administering an estate or trust. Their rates are based on a sliding scale - the larger the estate, the lower the percentage.

Typical percentages are in the range of 5% for the first $1M of the estate with decreasing percentages so that once the estate is over $15M, the percentage is very low, such as one-tenth of 1%. A huge difference from charging 5%. 

Compensation Options to Consider

Best practice is to fix compensation, if it is to be allowed, in the will or trust agreement. Unfortunately, many wills and trusts do not do so. There are a variety of options to consider.

1. In some situations, particularly if your spouse or child is acting as an executor or trustee, you might think they should not be paid for carrying out these roles. If that is the case, the will or trust agreement should say so.
2. If compensation is to be paid and if a professional such as a lawyer or accountant is an executor or trustee, you may consider they be paid based on time spent using their professional billing rate. 
3. You can fix an amount for a one-time executor fee and an annual amount for acting as trustee, which can be inflation adjusted. How large the fee should be will depend on several factors, including whether a close family member or friend is acting. Using a fee chart for what a trust company would charge is a useful benchmark, and adjustments can be made depending on what is considered appropriate.
4. You can fix a percentage based on the value of the estate, again using a trust company fee chart as a benchmark.
5. You can use a combination of any of the above options,  which could include a minimum or maximum amount based on a fixed amount or percentage of the value of the estate or trust.
6. You can include a process to determine compensation. It can be based on the approval or the agreement of the primary beneficiaries or the other co-executors (if, for example, they include certain family members) or if a trust, the settlor or other person in a fiduciary role such as a Protector, or an amount based on the methods set out above but with flexibility to allow a greater amount if approved or agreed.

Too much estate litigation involves disputes concerning compensation which could have been avoided with the appropriate advice and planning.

The unfortunate part is that if there is no provision in your will or trust agreement dealing with the amount of compensation, your intentions may not be carried out and an excessive amount of compensation that you would never have provided for might be claimed.

The issue is increasingly important given growing affluence and the number of large estates that are more common than in the past. In how many estates and trusts in Ontario has there been excessive compensation? Far too many!

For Further Reading

Estate Administration Basics – Updated April 2026

Who’s in Charge? Key Considerations in Choosing Your Executor – September 1, 2020

Appointing an Executor Under a Will: A Modern-Day Dilemma – May 31, 2018

Acting as an Executor or Attorney: Starting Out on the Right Foot – November 14, 2017

Fiduciaries, Mom and Apple Pie – March 22, 2016

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.