Definitions
5.1 (1) In this section, “compensation” means compensation for services provided under a compensation agreement or the payment of fees and expenses relating to those services, but does not include any amounts that are payable for the provision of legal services within the meaning of the Law Society Act; (“rémunération”) “compensation agreement” means an agreement with an heir of an estate to which this section applies that provides for compensation, directly or indirectly, to one or more persons or entities on the location, recovery or distribution of any interest in the estate to which the heir is or may be entitled, but does not include an agreement to provide legal services, within the meaning of the Law Society Act, to the heir in respect of the estate; (“entente de rémunération”) “heir” includes, (a) a person purporting to be an heir, and (b) a personal representative or beneficiary of an heir. (“héritier”) 2009, c. 33, Sched. 2, s. 22. Application of section (2) This section applies in respect of an estate if the Public Guardian and Trustee, (a) is conducting an investigation respecting the estate to determine whether the conditions set out in subsection 1 (1) are satisfied; (b) has applied for letters of administration or letters probate with respect to the estate; or (c) has been granted letters of administration or letters probate with respect to the estate. 2009, c. 33, Sched. 2, s. 22. Compensation agreement to be given to PGT (3) A person who wishes to rely on a compensation agreement for the purposes of this Act shall give the original agreement to the Public Guardian and Trustee. 2009, c. 33, Sched. 2, s. 22. Translation (4) A compensation agreement that is written in a language other than English or French shall be accompanied by a certified translation into English or French. 2009, c. 33, Sched. 2, s. 22. Requirements (5) A compensation agreement is not enforceable unless, (a) it is typed in 10 point or larger font; (b) it is signed by the heir, as well as by a person, other than a representative or agent of either party to the compensation agreement, who witnessed the signing by the heir; (c) it sets out, (i) the legal name and residential address of the heir and of the witness, (ii) the date on which and the place where the compensation agreement was entered into, (iii) the name of the estate and the estimated value of the interest in the estate to which the heir is or may be entitled, and (iv) the services to be provided to or on behalf of the heir under the compensation agreement; (d) it contains the statements referred to in subsection (6); (e) it provides for compensation of not more than 10 per cent of the value of the interest in the estate to which the heir is or may be entitled; (f) it provides that, within 60 days after the day on which a payment is made by the Public Guardian and Trustee of all or part of the interest in the estate to which the heir was determined to be entitled, an accounting acceptable to the Public Guardian and Trustee and containing the information and documents referred to in subsection (9) will be given to the Public Guardian and Trustee and to the heir; and (g) it meets any other requirements prescribed by regulation made under this Act. 2009, c. 33, Sched. 2, s. 22. Statements (6) For the purposes of clause (5) (d), a compensation agreement shall include the following statements, in a form acceptable to the Public Guardian and Trustee: 1. That the property in respect of which the compensation agreement was entered into is an interest in an estate. 2. That the Public Guardian and Trustee is administering or considering administering the estate named in the compensation agreement. 3. That the heir does not need to sign the compensation agreement in order to claim his or her interest in the estate from the Public Guardian and Trustee. 4. That the heir may contact the Public Guardian and Trustee directly regarding the estate or the heir’s interest in it. 5. That the heir may wish to obtain independent legal advice before signing the compensation agreement. 6. That the heir has not entered into any other compensation agreement or any other arrangement for compensation with respect to the estate or any interest in it. 7. That the estate shall be distributed only to lawful heirs, as determined by Ontario law. 8. Any other statement that, on the date on which the compensation agreement was entered into, was required by the Public Guardian and Trustee to be included in a compensation agreement. 2009, c. 33, Sched. 2, s. 22. Same, contact information (7) The statement referred to in paragraph 4 of subsection (6) shall include the Public Guardian and Trustee’s current contact information, including a full address and telephone and fax numbers. 2009, c. 33, Sched. 2, s. 22. Same, additional statements (8) A statement required to be included in a compensation agreement under paragraph 8 of subsection (6) shall be published by the Public Guardian and Trustee on a Government of Ontario website. 2009, c. 33, Sched. 2, s. 22; 2021, c. 34, Sched. 5, s. 1. Accounting (9) An accounting shall include, (a) the value of the interest in the estate to which the heir was determined by the Public Guardian and Trustee to be entitled; (b) the compensation paid under the compensation agreement from the payment of the interest in the estate by the Public Guardian and Trustee, for each person to whom it was paid; (c) the amount distributed to the heir from the payment of the interest in the estate by the Public Guardian and Trustee; and (d) proof of every payment and distribution made under the compensation agreement. 2009, c. 33, Sched. 2, s. 22. Same, additional documents (10) If the Public Guardian and Trustee determines that an accounting is not acceptable, the Public Guardian and Trustee may require such additional documents as he or she may specify to be given to the Public Guardian and Trustee and to the heir, within such time as the Public Guardian and Trustee may specify. 2009, c. 33, Sched. 2, s. 22. Translation (11) If an accounting or the documents given under subsection (10) are written in a language other than English or French, the copy of the accounting or documents given to the Public Guardian and Trustee shall be accompanied by a certified translation into English or French. 2009, c. 33, Sched. 2, s. 22. Copies to heir (12) The Public Guardian and Trustee may give to an heir who is a party to a compensation agreement that is in the possession of the Public Guardian and Trustee, (a) a copy of the compensation agreement; and (b) a copy of an accounting and of any additional documents given under subsection (10) in relation to the accounting. 2009, c. 33, Sched. 2, s. 22. Direct payment to heir (13) Despite the existence of a compensation agreement or a power of attorney or direction for payment relating to the compensation agreement, the Public Guardian and Trustee may pay all or any part of the interest in the estate to which the heir was determined by the Public Guardian and Trustee to be entitled directly to the heir, if, (a) the compensation agreement is not given to the Public Guardian and Trustee as required by subsection (3), together with a translation, if one is required by subsection (4); (b) the compensation agreement does not meet the requirements for enforceability set out in subsection (5); (c) the Public Guardian and Trustee receives information indicating that a term or condition set out in a compensation agreement has been breached; or (d) additional documents required under subsection (10) to be given are not given to the Public Guardian and Trustee, together with a translation, if one is required by subsection (11), within the time specified by the Public Guardian and Trustee. 2009, c. 33, Sched. 2, s. 22. Application to court (14) The Public Guardian and Trustee or a party to a compensation agreement may apply to the Superior Court of Justice for a determination of any question or dispute arising from the operation of this section in relation to the compensation agreement, and the court may make such orders or give such directions as it considers just. 2009, c. 33, Sched. 2, s. 22. Rights unaffected (15) Nothing in this section prevents an heir from asserting at any time that the compensation payable under a compensation agreement to which he or she is party is excessive or unjust. 2009, c. 33, Sched. 2, s. 22. Transition (16) This section does not apply in respect of a compensation agreement unless it was entered into on or after the day on which section 22 of Schedule 2 to the Good Government Act, 2009
comes into force. 2009, c. 33, Sched. 2, s. 22. Regulations (17) The Attorney General may make regulations prescribing additional requirements for the purposes of clause (5) (g). 2009, c. 33, Sched. 2, s. 22. Section Amendments with date in force (d/m/y) 2009, c. 33, Sched. 2, s. 22 - 14/01/2010 2021, c. 34, Sched. 5, s. 1 - 02/12/2021