A beneficiary in Ontario generally has no legal entitlement to demand payment of their inheritance within twelve months of the death. That period is the executor's year, a common law rule that gives the estate trustee time to identify assets, pay debts, file returns and settle the estate before anyone can compel a distribution. It is a shield for the estate trustee, not a deadline for finishing. Once the year has passed, two things change: a beneficiary can take steps to move the administration forward, and a gift of a specific sum of money begins to carry interest. This article is about that timing question. It does not cover how an estate trustee sizes an early partial payment, and it does not cover what to do when an estate trustee has simply stopped responding.
What Is the Executor's Year?
It is a rule about entitlement, not about completion. The estate trustee has one year, generally running from the date of death, before beneficiaries acquire a legal right to demand payment. Nothing in the rule requires the estate to be finished within the year.
Nothing prevents an earlier distribution. An estate trustee who is satisfied the estate can afford it may pay beneficiaries at any point, subject to the statutory bars and to retaining enough to cover what remains outstanding.
The rule carries an expectation of progress. The year exists to allow the work to be done, not to authorise doing nothing. An estate trustee who reaches the twelve month mark having taken no meaningful steps is in a weaker position than one who can show a file of steady work.
Ontario estates commonly run twelve to eighteen months from death to final distribution, and complex or contested estates run considerably longer. Our guide to how long probate takes in Ontario sets out the stages and where the time goes.
Some delays are required by law rather than chosen. On an intestacy, section 26 of the Estates Administration Act bars distribution until one year after the death. Where there is a surviving married spouse, section 6(14) of the Family Law Act bars distribution within six months absent written consent or a court order, although section 6(17) permits reasonable advances to dependants of the deceased spouse for their support. A dependant support application can suspend distribution altogether.
What Happens to a Legacy After the Year?
A gift of a specific sum of money begins to carry interest. This is the rule of convenience, a long-standing rule in equity built on the maxim that equity presumes as done that which ought to be done. Since a beneficiary should be enjoying the earning power of their legacy by the first anniversary of the death, where that enjoyment is postponed and the will does not fix another date for payment, interest is payable.
The traditional rate is 5% per year, simple interest, but it is not automatic. At 5%, a legacy of $100,000 unpaid at the first anniversary would accrue $5,000 per year. Ontario courts have since used their equitable discretion to award less. In Campbell Estate v. Campbell, 2021 ONSC 2424, the court held that 5% would be a windfall on the facts and set the rate at 1%. In Veiga v. Veiga, 2022 ONSC 6994, the court set it at 2%, because at 5% the interest would have amounted to half the specific gift and consumed most of the residue intended for the testator's grandchildren. The entitlement to interest is the settled part. The rate is the part that is argued about.
It applies to gifts of specific monetary amounts and not to a share of the residue. A beneficiary left "one third of the residue" does not accrue interest under this rule. A beneficiary left "$250,000" does. That distinction decides who benefits from a slow administration and who does not.
The Ontario Court of Appeal confirmed how the rule operates in Rivard v. Morris, 2018 ONCA 181. The court held the rule of convenience is not tied to the conduct of the estate trustee or of the beneficiaries, and applies even where it was not possible to pay the legacy within a year of the death. Certainty in the application of the rule was treated as the point of it. Two daughters with legacies of $530,000 each were awarded interest at 5% despite a will challenge they themselves had brought having contributed to the delay. What later decisions have varied is the rate rather than the entitlement.
Interest comes out of the residue. The people who bear the cost of a delayed legacy are the residuary beneficiaries, who are often the same people pressing the estate trustee to finish.
A will can displace the rule by fixing a different date for payment or excluding interest. Where the will is silent, the rule applies.
What Can a Beneficiary Do Once the Year Has Passed?
Ask for a written accounting. Beneficiaries are entitled to information about the administration, and the scope of that entitlement scales with the nature and size of their interest. A residuary beneficiary is entitled to a great deal.
Ask what specifically remains outstanding. A clearance certificate, an unsold property, a live claim, or a tax filing are all legitimate answers. Silence is not.
Press for an interim distribution where the estate can plainly afford one, rather than demanding the whole entitlement.
Compel a passing of accounts. A beneficiary can apply for an order requiring the estate trustee to pass their accounts before the court. Our guide to passing of accounts in Ontario explains the process.
Apply for directions, where the obstacle is a genuine question about how the estate should be administered rather than inaction.
Apply to remove the estate trustee under section 37 of the Trustee Act, where the delay reflects something more serious.
Removal is protective, not punitive. Courts do not remove estate trustees to punish them. The test is directed at the welfare of the beneficiaries and the proper administration of the estate. A frequently cited summary of the principles appears in Johnston v. Lanka Estate, 2010 ONSC 4124, drawing on Letterstedt v. Broers (1884). Ontario courts have removed estate trustees for prolonged and unexplained delay, particularly where the delay served the trustee's own purposes.
Costs are discretionary. They are in the court's discretion and are not automatically borne by the estate. A beneficiary who applies without first making reasonable informal efforts can find that reflected in the costs order.
Escalate in order. A demand for information, then a demand for an interim distribution, then an application. Applications brought without those earlier steps are harder to justify.
What Are Legitimate Reasons for Going Past the Year?
Waiting for a clearance certificate. The Canada Revenue Agency's service standard for issuing one is 120 calendar days, with a ninety percent target, and that clock effectively starts once the final returns are assessed. An estate trustee who distributes without a certificate or an adequate holdback is personally exposed.
Real property that has not sold. An estate trustee is not obliged to accept a poor price to meet a beneficiary's timetable.
A will challenge, a dependant support application, or an equalization claim. Each can bar or suspend distribution.
An asset that is genuinely hard to value, such as private company shares or a business interest.
A missing or unresponsive beneficiary, which has to be resolved before the estate can be closed.
| Reason for going past the year | How a court is likely to view it |
|---|---|
| Waiting for a clearance certificate or holding an adequate reserve | Legitimate, and expected of a prudent estate trustee |
| Real property still being marketed at a reasonable price | Legitimate |
| A will challenge, dependant support claim, or equalization application | Legitimate, and distribution may be barred outright |
| An asset that is genuinely difficult to value | Legitimate, where the valuation is being pursued |
| A missing or unresponsive beneficiary | Legitimate, where steps are being taken to resolve it |
| No steps taken and no explanation given | Not legitimate |
| Withholding to obtain leverage in a family disagreement | Not legitimate, and a ground for removal |
What is not a legitimate reason is inattention, an unwillingness to engage with beneficiaries, or using distributions as leverage in an unrelated family disagreement. Where an estate trustee is dealing with a beneficiary who will not cooperate with the administration, our guide to handling an uncooperative beneficiary covers the options on that side.
Where This Goes Wrong
Treating the year as a completion deadline. It is not. It marks when entitlement to demand payment arises.
Assuming interest runs on every gift. It runs on gifts of specific sums, not on shares of residue.
Ignoring the interest exposure. An estate trustee sitting on unpaid legacies past the anniversary is accruing a liability against the residue whether or not anyone has raised it. The rate is open to argument, but the entitlement generally is not.
Going silent. Beneficiaries escalate because they are not being told anything far more often than because the estate is genuinely too slow. A short quarterly update prevents a large number of applications.
Applying to remove before asking for an accounting. Courts expect the lesser remedies to be tried, and costs follow that expectation.
Distributing early to stop the complaints. The statutory bars still apply, and the estate trustee remains personally liable for what the estate later owes.
Paying the loudest beneficiary first. Beneficiaries of the same class are entitled to be treated alike, and preferring one is a breach of the duty of impartiality.
If you are a beneficiary who has passed the twelve month mark without information, or an estate trustee weighing whether the estate can afford to pay, both questions are answerable quickly. You can book a free call.
Frequently Asked Questions
What is the executor's year in Ontario?
It is a common law rule giving the estate trustee one year, generally from the date of death, before beneficiaries have a legal entitlement to demand payment. It is not a deadline for completing the administration, and nothing in it prevents an earlier distribution.
Can beneficiaries force an executor to pay within a year?
Generally not. Before the twelve months are up, a beneficiary has no legal entitlement to demand payment, although they remain entitled to information about how the estate is being administered.
Does an unpaid inheritance earn interest in Ontario?
A gift of a specific sum of money generally begins carrying interest after the executor's year, unless the will provides otherwise. This is the rule of convenience, and it does not apply to a gift of a share of the residue. Rivard v. Morris applied 5% simple interest, but later Ontario decisions have awarded lower rates, including 1% in Campbell Estate v. Campbell and 2% in Veiga v. Veiga, so 5% should not be treated as an automatic rate.
What can a beneficiary do if the executor is taking too long?
Ask for a written accounting, ask what specifically remains outstanding, press for an interim distribution, and if that fails apply to compel a passing of accounts, apply for directions, or apply to remove the estate trustee. Courts expect the lesser steps to be tried first, and costs are discretionary.
How long do Ontario estates usually take?
Twelve to eighteen months from death to final distribution is common, with complex or contested estates running longer. Waiting for a clearance certificate, selling real property, and resolving claims are the usual reasons for going past the year.
Can an executor be removed for delay?
Yes, where the delay is serious and unexplained. Removal under section 37 of the Trustee Act is protective rather than punitive, and the court's focus is the welfare of the beneficiaries and the proper administration of the estate rather than punishing the trustee.
This article provides general information about Ontario law and is not legal advice. Speak with a lawyer about your specific circumstances.