Does the Alberta Public Trustee Hold a Minor's Inheritance?

When a child inherits, many executors and guardians assume the money automatically goes to the Office of the Public Trustee. The real answer is more nuanced. The Public Trustee is involved in some cases, steps back in others, and always has a role in reviewing the paperwork.

This article explains when the Public Trustee holds a minor's money, when a parent or guardian can do it instead, and how funds reach the child. A lawyer can confirm what applies to your estate.

This article covers the law of Alberta.

The short answer

Not always. The Public Trustee may manage a minor's share only when no one else can. But it must review all grant applications in Alberta where a minor is a beneficiary of an estate.

In Alberta, a minor is anyone under 18.

When the Public Trustee is involved

• The Public Trustee must be served on a grant application where the deceased is survived by a minor child, and the application must not proceed until it is represented or has said it will not be.
• It may manage the minor's share when no one else can.
• Land transfers involving a minor's interest need its consent.
• Workers' Compensation amounts owed to a minor must go to the Public Trustee regardless of size.

If a minor is owed under $25,000 and no trustee is named, the payer may give the funds to either the Public Trustee or a parent or guardian.

When a parent or guardian can act instead

A parent or guardian may apply to the court to be a minor's trustee if no trustee was named or the Public Trustee is not required to be trustee, and a bond is usually required.

A trusteeship order is an order under section 10 of the Minors' Property Act appointing trustees of a minor's property. If the minor is 14 or older, the minor's consent (Form MP3) is required unless the court allows otherwise under s. 14(3) of that Act.

If the will names a trustee for the child, that wording matters, so read it closely and ask a lawyer how it fits with the court process.

How the money is held and released at 18

The Public Trustee holds a minor's funds in its Common Fund and guarantees the money in full. Trust money for a minor is payable at 18, or at the age set in the trust document. The Public Trustee cannot change that age.

So if the will or trust sets a later age, the money is held until then. If it sets none, the usual release age is 18. Contact the Office of the Public Trustee for its current steps for requesting payment once the child is eligible.

If funds remain in an estate the Public Trustee administers and beneficiaries cannot be located, the funds eventually go to Alberta's provincial treasurer, but beneficiaries who turn up later can still claim their share.

What to do next

• Check the will for a trust, a named trustee and a release age.
• Add up what the child is owed, since the amount can affect who may receive it.
• Decide with a lawyer whether a parent or guardian should apply to be trustee, remembering a bond is usually required.
• Expect the Public Trustee to be served and to review the grant application.
• Keep the child's birth information and your contact details current so payment at the right age goes smoothly.

Frequently asked questions