Mary Thibeault died in 2004 and Kelly was named the executor and trustee of her estate valued at more than $500,000, according to court documents. (CBC)

Halifax Mayor Peter Kelly has agreed to step down as executor of the estate of Mary Thibeault, a family friend who died in 2004.

The estate was valued at more than $500,000.

Beneficiaries had petitioned the province's probate court to have him removed. In the affidavit filed in June, they detail their concerns about Kelly's accounting of the estate and his continued procrastination.

In the list of reasons why they want Kelly removed, they itemize numerous cheques to Kelly and his son, together worth about $180,000

On Wednesday Kelly said he would give up the role and provide full accounting of the estate's activities by Oct. 1.

The court said the mayor must now hand over all money in the estate bank account to the new executor, Elizabeth Herritt one of the heirs who was behind the move to fire Kelly.

Some of the people named as beneficiaries have yet to receive their portion of her estate.