Author: Laura Rask
Many people agree to act as an executor without giving much thought to the amount of work involved. Administering an estate can include gathering assets, paying debts, filing tax returns, managing investments, selling property, communicating with beneficiaries, and keeping detailed financial records.
Given those responsibilities, a common question is: does an executor get paid for their work?
The short answer is yes. In Saskatchewan, executors are generally entitled to receive reasonable compensation for administering an estate; however, the compensation amount is not automatic and depends on the circumstances of the estate and the work actually performed.
How is Executor Compensation Determined?
Section 52 of The Trustee Act, 2009 provides that where a will does not specify compensation, an executor is entitled to a reasonable allowance for administering the estate. The amount may be approved by the beneficiaries or fixed by the Court.
When determining what is reasonable, Saskatchewan courts consider several factors, including:
- The size of the estate;
- The level of care and responsibility involved;
- The time required to administer the estate;
- The skill and ability demonstrated by the executor; and
- The success of the administration.
No one single factor is determinative. The ultimate question is whether the compensation sought is fair and reasonable in light of the work performed.
Is There a Standard Percentage?
Although there is no fixed formula, Saskatchewan courts have frequently assessed executor compensation as a percentage of the estate’s value. Recent cases suggest that executor compensation generally falls within the range of 1% to 3% of the estate value, with 5% typically reserved for estates involving exceptional complexity or unusual circumstances.
That said, courts have cautioned against relying too heavily on percentages alone. A large estate does not automatically justify a large fee, just as a smaller but highly complicated estate may warrant greater compensation. The focus remains on the actual work, responsibility, and effort involved.
A Recent Saskatchewan Decision
In Wernicke v. Wernicke, 2025 SKKB 208, the Saskatchewan Court of King’s Bench considered compensation claimed by executors who had administered a farming estate and trust for approximately 24 years. The estate involved millions of dollars in assets, ongoing farming operations, numerous beneficiaries, and significant administrative responsibilities.
The Court concluded that the estate was unusual enough to justify compensation at the upper end of the accepted range and approved total executor compensation equal to 5% of the realized value of the estate. The Court also emphasized an important principle: executors should not simply pay themselves whatever compensation they believe is appropriate. In Wernicke, the executors had already taken substantial fees without obtaining beneficiary consent or prior Court approval. The Court ultimately required repayment of amounts that exceeded the compensation it determined was reasonable.
Can an Executor Pay Themselves Before Administration of the Estate is Finished?
Not necessarily.
Under Saskatchewan law, executors who wish to receive compensation before passing their accounts must generally provide notice to the beneficiaries and allow them an opportunity to object. Alternatively, they may seek approval from the Court.
Failing to obtain the required approval can create disputes and may expose an executor to a later repayment order if the compensation ultimately approved is lower than the amount already received.
When Should Legal Advice be Obtained?
Executor compensation is a common source of dispute during estate administration. Beneficiaries often want to ensure estate funds are being used appropriately, while executors understandably want to be compensated for the time and effort required to administer the estate.
If you are acting as an executor and are unsure what compensation may be appropriate, or if you have concerns regarding compensation being claimed by an executor, obtaining legal advice early can often prevent costly disputes later in the administration process.
Our Estate Litigation and Estate Administration Teams assist executors and beneficiaries with questions relating to estate accounts, executor compensation, and the administration of estates in Saskatchewan. Contact our office to discuss your situation and obtain advice tailored to your specific circumstances.
This article is intended for general informational purposes only and should not be taken as legal advice. It does not address the specific circumstances of any individual case and is not a substitute for obtaining advice from a qualified lawyer. Reading this article does not create a solicitor-client relationship, and you are encouraged to consult legal counsel before making any decisions regarding your legal rights or obligations.
