What Are a Court-Appointed Trustee's Duties for an Adult in Alberta?

If a family member can no longer manage their money and the Court names you as their trustee, you take on a serious role. You will be making financial decisions for another adult, and the Court expects you to be careful, organized and open about what you do.

This article explains who can be a trustee under Alberta's Adult Guardianship and Trusteeship Act, the main duties, the paperwork that follows, and what can happen if things go wrong. It is general information, not advice on your situation.

This article covers the law of Alberta.

Who can be a trustee

The Court may make a trusteeship order for an adult who is ordinarily resident in Alberta. The Court may appoint a trustee if it is satisfied that the adult lacks capacity to make decisions about financial matters. A trustee must be an individual 18 or older who consents to act.

If two or more trustees are appointed, they must act jointly, and the Court may also appoint an alternate. Applications use consent forms for both the proposed trustee and the alternate (Forms 27 and 29).

The Court may require a trustee to provide a bond or other security. A bond is typically needed for a trustee who is not an Alberta resident, unless the Court waives it.

The Court may appoint the Public Trustee as trustee only in the circumstances listed in s 50(1) of the Act. Where the Public Trustee receives a written allegation that an adult needs a trustee, it must inquire. Notice of a trusteeship application must be personally served on the adult, subject to s 46(4). The Alberta guidance also says to consider informal trusteeship first, because it is a less intrusive alternative to a court-ordered trusteeship.

The core duties

A trustee must act in the represented adult's best interests. A trustee must also act with the care, skill and diligence of a reasonably prudent person.

In plain words, that means treating the adult's money as theirs, not yours. Pay their bills, protect their assets and make decisions you could explain and defend later.

• Keep the adult's finances separate from your own.
• Keep receipts and statements.
• Act in the adult's interests even when family members disagree.
• Ask a lawyer or accountant before doing anything unusual with the adult's property.

Inventory and accounts

A trusteeship application includes a Trusteeship Plan (Form 34) and an Inventory (Form 37). The inventory may be filed with the application or within 6 months after the Trustee Order.

The Act requires accounts to be kept in accordance with the regulations. When directed, the trustee must submit accounts to the Court for examination and approval. Good records kept from the first day make this far easier.

Urgent orders and powers of attorney

In an urgent situation, the Court can make a temporary order if the adult is in immediate danger of serious financial loss. A temporary trustee cannot sell, dispose of or encumber the property. The Alberta guidance describes this authority as lasting up to 90 days.

If the adult signed an enduring power of attorney, a trusteeship order changes things. An enduring power of attorney ends when a trusteeship order is granted in respect of the donor.

When duties are breached, and next steps

Complaints under the Act go to a complaints officer. A person who wilfully causes loss to a represented adult's property faces a fine of up to $10 000. The Office of the Public Guardian and Trustee (OPGT) also investigates written complaints about court-appointed guardians, trustees and personal directive agents that meet its criteria.

Where a represented adult is at risk of serious harm, the Public Guardian may apply for a temporary protection order.

A review of a trusteeship can be sought at any time, and the Alberta page lists a $100 court filing fee for a trusteeship review. The Court shall terminate the order if satisfied the person no longer needs a trustee, and it may discharge a trustee for breach of trust or unsuitability. If the adult has regained capacity and termination is sought, a capacity assessment may be required.

• Read the Trustee Order and note every date and condition.
• Open a separate account arrangement for the adult's money.
• Start a file for receipts, statements and notes of decisions.
• Diarize the inventory deadline and any review date.
• Speak to a lawyer if you are unsure about a decision or face a dispute.

Frequently asked questions