Can a minor be named as a beneficiary in Ontario, and who manages the money?
Yes, a minor can be named, but someone else usually holds the money until the child is older. If no trustee is named, a child's share over $35,000 is paid into court and managed by the Accountant of the Superior Court of Justice until the child turns 18.
A share of $35,000 or less can be paid to the parent the child lives with, or to the person with lawful custody, who holds it as guardian of property until the child turns 18. For life insurance, if no one can give a valid discharge, the insurer must pay a minor's money into court within 30 days after receiving the required evidence, although it may pay a guardian of property instead. An adult named as trustee of insurance proceeds with no trust terms may only hold and invest the money until the child turns 18.
Under a will, a child is paid at the age the will states, and with no will the child receives their share at 18. If a beneficiary is under 18 when an estate trustee applies for a certificate of appointment, the Office of the Children's Lawyer must be served. A lawyer can help you choose the right structure.
Key takeaways
- If no trustee is named, a child's share over $35,000 is paid into court and managed by the Accountant of the Superior Court of Justice until the child turns 18.
- A share of $35,000 or less can be paid to the parent the child lives with, or the person with lawful custody, who holds it as guardian of property.
- For life insurance, the insurer must pay a minor's money into court within 30 days after receiving the required evidence if no one can give a valid discharge, though it may pay a guardian of property instead.
- Under a will a child is paid at the age the will states, and with no will the child receives their share at 18.