New Dawn Insights

Join our mailing list

First name(Required)

Email(Required)

I want to subscribe to your mailing list.

All Posts
Estate Planning Essentials
Power of Attorney Personal Care
Power of Attorney for Property
Estate Planning
Estate Administration
The Executor's Hub

Understanding Executor Compensation in Ontario." It outlines the 5% guideline (2.5% for capital/revenue receipts and disbursements), the Five-Factor Test for fairness, and a pro-tip noting that executor fees are taxable income while inheritances are tax-free.

Understanding Executor Compensation in Ontario: The "5% Rule" and Beyond

Serving as an executor is often described as a "labour of love," but it is also a significant legal and professional responsibility. In Ontario, the Trustee Act allows for a "fair and reasonable allowance," but navigating the "5% guideline" and the mandatory Five-Factor Test can be complex. This post breaks down how executor compensation is calculated in 2026, the tax implications of taking a fee, and how to avoid conflict with beneficiaries through transparent accounting.

The Executor's Hub

Shannon Williams

Apr 283 min read

New Dawn Financial Inc.

Professional Executor Services

Helping Ontario executors navigate estate settlement with confidence, care, and expertise.

CFP® · TEP · CEA · MTI · DMA™ · MFA-P™

Explore

shannon@newdawnfinancial.ca

33 Main Street West,

Grimsby, ON L3M 1R3

289-455-8558

Disclaimer:

The services provided by New Dawn Financial Inc. are focused on financial, estate, and tax planning strategies and are delivered based on professional designations including CFP®, TEP, CEA, MTI, DMA™, and MFA-P™. Our role is to provide guidance on tax-efficient financial planning and estate strategies; however, our services do not constitute formal legal advice or investment advice. New Dawn Financial Inc. prepares and files T1 terminal returns and T3 estate and trust returns directly as part of our executor support and estate administration services. For complex tax disputes or matters outside estate administration, please consult a registered tax professional. For legal matters, please consult with a licensed lawyer. For specific securities recommendations, please consult a licensed investment advisor.

Executor and Trustee appointments are personal appointments of Shannon Williams. When acting in this capacity, an estate bank account will be opened in the estate's name with a recognized financial institution. New Dawn Financial Inc. provides administrative support but is not a Trust Company, nor a lending or deposit-taking institution.

All content on this website is provided for informational purposes only and should not be relied upon as personalized financial, legal, or tax advice. While we make every effort to ensure accuracy and timeliness, no guarantee is made as to completeness or correctness. Regulations and tax laws change frequently, and users should seek advice tailored to their specific circumstances. By using this website, you acknowledge that no client relationship is formed until a written engagement agreement has been signed. New Dawn Financial Inc. assumes no liability for decisions made based on the information provided herein.

bottom of page