Can a Beneficiary Be Ordered to Pay Costs in Ontario Estate Litigation?

Can a Beneficiary Who Skips the Formal Objection Process Still Be Heard in Court?

A beneficiary who does not file a formal Notice of Objection loses the right to formally contest the accounts — but an Ontario court may still hear their submissions. In Helsdon v. Wilson, 2026 ONSC 5767 (CanLII), Justice Sanfilippo confirmed that under Rule 74.18(7) of the Rules of Civil Procedure, a person who wishes to object to accounts must serve and file a Notice of Objection at least 35 days before the hearing. The beneficiary here received multiple opportunities and reminders but filed nothing. Despite that, the court still listened to his concerns — and found none of them amounted to a valid objection.

This matters practically: if you are a beneficiary who disagrees with how an estate or trust is being run, the formal objection process exists for a reason. Showing up at a hearing without having filed the required paperwork puts you in a very weak position.

What Happens When an Estate Trustee Passes Accounts in Ontario?

Passing of accounts is the formal court process by which an estate trustee or trustee demonstrates that they have properly managed estate or trust assets and asks the court to approve their financial records. In this case, the trustees applied to pass accounts for two separate periods — one covering the estate of the deceased and one covering a testamentary trust created under her will. Both applications proceeded unopposed: the beneficiary did not file objections, his adult daughter did not object, and the trustees had reached an accounting agreement with the Office of the Children’s Lawyer, which represents unborn or unascertained beneficiaries.

The court reviewed the accounts and found that all transactions related to proper administration. Under that agreement, the trustees waived compensation the accounts would have supported ($160,954.91 for the estate period and $57,088.51 for the trust period).

Are Ontario Trustees Entitled to Have Their Legal Costs Paid?

Yes — Ontario trustees are generally entitled to be indemnified for costs they reasonably incur in administering a trust. The court cited the Supreme Court of Canada’s statement in Geffen v. Goodman Estate that trustees are entitled to indemnification for all costs, including legal costs, properly incurred. Section 23.1 of Ontario’s Trustee Act codifies this principle. In this case, the trustees incurred over $53,000 in legal costs bringing the trust passing of accounts application, and the court found that amount fair, reasonable, and proportionate given the volume of documentation involved.

Who Pays Legal Costs in Ontario Estate and Trust Disputes?

The court explained that, under Court of Appeal guidance, costs in estate litigation are governed by the same rules as other civil litigation unless public policy considerations require that costs be paid out of the estate. Those considerations are giving effect to wills that reflect the testator’s intentions and ensuring estates are properly administered. In earlier proceedings in this family dispute, judges had ordered the same beneficiary to pay some costs after finding his objections caused delay and expense.

Here, the trustees and the Children’s Lawyer asked the court to order the beneficiary to personally pay a portion of costs — specifically the amounts incurred after February 24, 2026. The court declined, for six distinct reasons explained below.

Why Did the Court Refuse to Order the Beneficiary to Pay Costs Personally?

The court identified six reasons for declining to make a personal cost order against the beneficiary, even though his conduct had been problematic throughout years of related litigation.

First, the trustees had not actually claimed costs against him personally in their formal cost requests — they had asked only that costs be paid “out of the trust.” A personal cost claim requires proper pleading and notice.

Second, even if the claim had been properly pleaded, the amended cost requests were served fewer than 15 days before the hearing, short of the minimum required by Rule 74.18(11.1). The beneficiary had no fair opportunity to respond.

Third, the trustees were required to bring the application under their agreement with the Children’s Lawyer. The court accepted that a formal passing was reasonable given the history of contested passings, but saw no evidence that the beneficiary required it.

Fourth, the trustees’ proposed cost-start date of February 24, 2026 was the day they sent the Judgment Record by courier — but it was not served until two days later, and that service itself was short of the seven-day minimum under Rule 38.09. The court saw no reason why personal costs would begin on that date.

Fifth, unlike in earlier related proceedings, the beneficiary here had not filed any Notice of Objection. The trustees were not put to the expense of responding to formal objections, which distinguished this application from prior ones where his objections had “led to a further unnecessary year of litigation.”

Sixth, while the hearing ran longer than expected, the court found the extra time could not be attributed solely to the beneficiary.

The court was careful to say it did not condone the tone or content of some of the beneficiary’s written communications or his intemperate submissions in court, and that a self-represented litigant must act with the same civility expected of counsel. That conduct did not change the costs result here.

What Does This Mean for Trustees and Beneficiaries in Ontario?

For trustees, this decision reinforces that entitlement to cost reimbursement is well established — but that seeking costs against a specific beneficiary personally requires careful procedural groundwork. Requests for increased costs must be served with adequate notice, and the specific claim (including who is to pay) must be clearly stated in the formal cost request.

For beneficiaries, the decision is a reminder that the formal objection process is not optional. Participating in hearings without filing the required paperwork is a weak substitute. At the same time, the decision shows that courts will scrutinize whether trustees have followed their own procedural obligations before shifting costs to a beneficiary personally.

Our Ontario wills and estates lawyers regularly advise both trustees and beneficiaries navigating passing of accounts proceedings and estate disputes. If you are dealing with questions about executor responsibilities more broadly, our executor liability resources may also be helpful.

Questions and Records to Discuss with a Lawyer

• What notices or objections have been filed (or not filed) in the passing of accounts proceeding, and by what deadlines?
• Has the estate or trust accounting been verified by affidavit, and have all interested parties been served?
• If costs are being sought against a specific party, has that claim been formally pleaded with adequate notice?
• What agreements, if any, have been reached with the Office of the Children’s Lawyer or other parties regarding the administration of the estate or trust?
• What is the history of prior court orders in related estate or trust proceedings, and how might those findings affect the current application?

If you have questions about a passing of accounts, trustee compensation, or cost disputes in an Ontario estate or trust matter, we invite you to reach out to UL Lawyers through /connect to discuss your own circumstances.

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This article is automated commentary on a public court decision and is for general information only — not legal advice. Decisions rely on facts unique to each case. If you are affected by a similar issue, contact a lawyer for advice specific to your situation.