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A passing of accounts is not strictly, in legal terms, a mandatory requirement. Rather, an estate trustee, attorney, or guardian, may choose to pass its accounts, or alternatively, may be compelled to do so by those legally entitled. The legal duty is in the maintenance of the accounts as fiduciaries. The right to compel an accounting is not an absolute right, regardless of the circumstances, rather it remains within the discretion of the court to either grant or refuse such an order.
A passing of accounts is a formal procedure governed by statute that results in court approval of the relevant period of administration, or property management. Where the beneficiaries of an estate are minors, or incapable of property management, and particularly in circumstances where compensation is being sought, the policy of the Ontario Children’s Lawyer (the “OCL”) and the Public Guardian and Trustee (the “PGT”) generally, with exceptions, mandate for accounts to be passed.
The court has the discretion to grant or refuse an order for a passing of accounts. Many factors in choosing whether to pass accounts may need to be considered, including, but not limited to, the nature and extent of the estate, the complexity of the administration, whether there has been litigation, the provisions of the Will, Trust, Power of Attorney document, or Guardianship Order, the status or terms of taking compensation and the provisions of the Will or Trust in that regard, liability factors, releases, claims, creditor claims, or other.
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