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All fiduciaries (estate trustees, attorneys under powers of attorney, guardians, and trustees of a trust) are legally obligated to keep accurate records and accounts of their management of assets. Sometimes, a fiduciary will be required to bring an application to pass their accounts to Court: in this article, we discuss the nature of this particular application.
An application to pass accounts refers to the legal process of obtaining the Court’s approval of the fiduciary’s accounts. The fiduciary brings the application to pass their own accounts.
A fiduciary includes anyone who manages an estate, trust, or acts as a substitute decision-maker for someone else, such as:
- an executor / estate trustee of an estate;
- a trustee of a trust;
- an attorney (under a powers of attorney) for personal care and for property; or
- a guardian (of the person or property).
A person who acts as a fiduciary must keep accurate and complete records or accounts of any decisions they make, any assets they manage, and any payments they make.
There are certain parties that can compel a fiduciary to bring an application to pass accounts or request the Court to order the fiduciary to pass their accounts if there is concern about transparency, mismanagement of assets, or potential breaches of fiduciary duty by the fiduciary.
Such parties can include beneficiaries of an estate or trust, grantors, individuals represented by substitute decision-makers, other fiduciaries (such as co-fiduciaries in the same estate or trust), the Attorney General of Ontario, or creditors.
With over three decades of experience helping fiduciaries pass their accounts, our lawyers are here to help!
For more information about applications to pass accounts, contact Sweatman Law today!
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DISCLAIMER: This blog post should not be interpreted as legal advice for your specific situation, concerns, or challenges. All litigation matters are unique and should be reviewed by legal, financial, and health professionals, and tax accountants. Please be advised that the information on this website relates to laws specific to Ontario or Canadian federal law. Legal advice, procedure, and legislature may vary in different jurisdictions.
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