What happens if an estate beneficiary is legally incapable in Ontario?

When an estate beneficiary in Ontario lacks legal capacity — for example, due to a developmental disability, dementia, or a serious mental health condition — the executor cannot distribute directly to that person without appropriate legal arrangements. The distribution must instead be made to someone authorized to receive it on the incapable person's behalf.

If the beneficiary is an adult who has been declared incapable by the court, they will have a court-appointed guardian of property, or may have granted a power of attorney for property while they had capacity. The executor can make the distribution to that guardian or attorney.

If there is no substitute decision-maker in place, it may be necessary to apply to the court to appoint a guardian, or to seek involvement from the Public Guardian and Trustee, who acts as the statutory guardian of property for incapable persons who have no other authorized representative. The executor should confirm the appropriate recipient before distributing to avoid personal liability.