A Basic Understanding of Things for the New Executor

This post is for anyone who has recently begun considering what the executor role truly entails. For most people, it feels like stepping into a completely different world—one far more complex and disjointed than expected! A key first step is learning the essential terminology. For instance, what exactly is probate? Most people have no idea unless they've served as an executor before. In this post, we'll define probate and other important terms while exploring the key institutions involved in the world of estates.

Let's start with the word “estate”.

What's an estate?

To answer this, let's consider a simple scenario: Suppose a person with a bank account dies on Monday. Who owns the money in that account on Tuesday?^[1]

Clearly, the deceased person (the “decedent”) no longer owns it—after all, you can't own property when you're no longer alive. So who does? The government? The decedent's spouse? The decedent's sibling? The decedent's child? The bank, perhaps?

None of the above. The owner is not a human—not yet. Until a specific process is completed, the money belongs to the decedent’s estate. Thus, an estate is essentially a “legal person” (it’s essentially a type of “trust”, actually). An estate can own assets. In our example, when an estate owns cash, it holds that money in its own bank account—often titled, say, “The Estate of John H. Smith.” John Smith's personal accounts are closed, and the funds are transferred to the estate’s account, where they remain until the estate is finalized and closed.

The executor’s primary job is to manage the decedent’s estate. As noted earlier, the estate functions essentially like a trust. All trusts are managed by trustees, and in this case, the trustee is the executor. Yes, there can be more than one! Just as a non-profit corporation may have a board of trustees, an estate can have multiple cooperating executors if the decedent named them in their will.

When a person dies, not everything they own automatically becomes part of their estate. Certain assets pass directly to designated beneficiaries. For example, if the decedent had a life insurance policy paying out $500,000 upon death, those proceeds go straight to the named beneficiary(ies) and bypass the estate entirely. We’ll explore this distinction—what does and doesn’t enter the estate—another time. For now, let’s stick to the basics.

Let's talk about wills

A will is essentially a set of instructions left for the executor. It directs how the estate should be managed and how its assets should be distributed. Once the estate is fully administered and emptied, it can be closed, and the executor’s role ends.

The person who creates a will is called the “testator.” Note that the testator is the same individual as the “decedent,” but the terms refer to different stages: the testator is alive when writing the will, while the decedent is deceased.

If someone dies without a will, they are said to have “died intestate.” In Ontario, intestate estates follow the rules set out in the Succession Law Reform Act (Part II - intestacy rules). In short: If there is a will, the executor must follow its instructions precisely when managing and closing the estate. If there is no will, you’ll need to apply to the court to be appointed executor, and if approved, follow the intestacy rules.

Now let's talk about probate

Suppose your loved one has died, you’ve located the will, and it names you as executor. Does that mean you can immediately start accessing bank accounts, selling assets, or distributing funds to beneficiaries? Can you begin clearing out the decedent’s home?

No. Being named in the will does not automatically grant you authority to act. You must apply to the court for formal approval—this process is known as “probate.”

In Ontario, these applications are handled by the Ontario Superior Court of Justice. When you apply, you submit a copy of the will along with other required documents. The court reviews the will’s validity. Once approved, we say “the will has been probated.”

There’s a significant difference between a probated will and one that hasn’t been. If someone shows a bank a non-probated will claiming to be the executor, the bank will almost certainly refuse access. They’ll insist on seeing the probated version.

Why do banks require probate? It’s a common source of frustration. People often have the original will, properly notarized and authenticated, yet the bank still refuses. The reason is simple: the bank can’t be certain the presented will is the most recent one. An older will could have been revoked by a newer one. If the bank acted on an invalid will, it could face legal liability.

The same risk applies to the self-proclaimed executor. Acting on an unprobated will could lead to serious problems if a later will surfaces with different instructions.

Probate prevents these issues. Once the will is probated, the executor has court-backed authority to act safely. This protects both the executor and the institutions involved (like banks).

Probate isn’t free. In Ontario, probate fees (officially known as Estate Administration Tax or EAT) are based on the estate’s value—roughly 1.5%. For example, a $1 million estate incurs $14,250 in fees. Fees vary by province, and Ontario’s are among the higher ones.

To apply for probate, the executor submits specific forms available on the Government of Ontario website: here. The required forms depend on the estate’s specifics. Most people benefit from professional help with this process (book your consultation below!).

Approval can take months, especially in larger cities. While waiting, the executor must still handle essential tasks: protecting and maintaining property, paying bills, preventing identity fraud, arranging the funeral, and more—there are ways to do this before probate has been granted. Once approved, the executor receives the probate certificate (known by other names in different provinces). Presenting this certificate allows access to assets held by banks and other institutions.

Can you make distributions yet?

By the time the probate certificate arrives, beneficiaries are often impatient. Many don’t fully understand the process and may blame the executor for delays, adding stress. It’s tempting to distribute assets quickly, but this can be a serious mistake.

The executor must first pay all debts, taxes, and administrative costs. Once money leaves the estate, it’s gone—but debts and liabilities remain. If funds are distributed prematurely, the executor could be personally liable for any shortfalls.

This responsibility stems from the executor’s fiduciary duty: a legal obligation to act in the best interests of the beneficiaries. Executors hold assets in a fiduciary capacity, much like trustees.

Breaching this duty—even unintentionally—can result in personal liability. Beneficiaries or creditors can sue, and courts may order the executor to cover losses. Common pitfalls include early distributions or errors leading to unnecessary tax bills.

This fiduciary duty makes the executor role risky. Proper guidance from an advisor can help mitigate these risks.

Once all debts and obligations are cleared, the executor can apply for a Clearance Certificate from the Canada Revenue Agency (CRA). This confirms all taxes are paid and protects against future liability. Distributions should never occur without this certificate—no matter how insistent a beneficiary may be.

We hope this overview helps those navigating these challenging circumstances. Check our FAQ page for more details. For personalized guidance, we recommend working with an experienced advisor (preferably a CEA). To discuss how we can help, book your free consultation below.

^[1] This is a simplified example. In reality, the account might have a joint owner. In that case, the joint owner would become the sole owner of the money upon the death of the other person. For this explanation, we assumed the account was not jointly owned.