Guardianship of a Child's Property in Ontario Explained

A grandparent leaves money to a grandchild. A child receives an insurance payout or a settlement. Suddenly an adult asks: who is allowed to manage this money until the child grows up?

This article explains in plain terms what guardianship of a child's property means and what questions to ask. The exact rules on when a formal appointment is required, and when the Office of the Children's Lawyer is involved, depend on the amount and the source of the money. A lawyer should confirm them for your situation.

Two different kinds of guardianship

Guardianship of the person is about a child's care and upbringing. Guardianship of property is about managing money or assets that belong to the child, such as an inheritance, a settlement or insurance proceeds. Who can handle a particular sum depends on where the money comes from, how much it is and what the payer requires, so it is worth confirming with a lawyer.

Someone who is raising a child without being a parent, such as a grandparent, relative or family friend, may apply to court for a contact order as well as a parenting order on decision-making responsibility under the Children's Law Reform Act. A parenting order is a separate question from control over a child's money.

When the question usually arises

• A will or estate leaves money or property to a minor.
• An insurance policy, pension or death benefit names a child.
• A legal claim is settled on a child's behalf.
• A gift or trust is meant for the child but no adult is clearly in charge of it.

Payers, estates and insurers often want to know who is authorized to receive and manage a child's money. Some will pay a small amount to a parent, while others will want a formal arrangement. Which applies depends on the amount, the payer and the type of asset, so ask the payer what they require in writing and then ask a lawyer.

Where the Children's Lawyer fits

The Children's Lawyer is a public office that protects the interests of children in legal matters. In adoption law, for example, a consent given by someone under 18 is not valid unless the Children's Lawyer is satisfied that it is fully informed and reflects that person's true wishes.

Whether the Office of the Children's Lawyer must be notified or becomes involved in a given inheritance, settlement or insurance payment depends on the facts and the amount. A lawyer can tell you whether it applies to you and what documents it would expect.

How a child's money can affect benefits

If you are caring for a child who is temporarily in your care and you have no legal obligation to support them, Temporary Care Assistance may give up to $274 a month for the first child and $224 for each additional child, or $440 and $326 north of the 50th parallel without year-round road access. The caregiver's own finances are not assessed, but the child's asset limit is $500.

That limit matters if a child receives an inheritance or settlement while a caregiver is receiving this assistance. Assistance is also not available where the caregiver is paid for care under the CYFSA, or has a legal obligation to support the child, such as an adoptive parent. Amounts can change, so confirm current figures with Ontario Works before relying on them.

What to do next

• Identify the source of the money: estate, insurance, settlement or gift.
• Ask the payer in writing what proof of authority they require to release funds for a minor.
• Keep copies of the will, policy, settlement terms and the child's birth documents.
• Do not spend or move the funds before you know who is authorized to manage them.
• If the child's caregiver receives benefits, ask the program how the child's assets are treated.
• Speak with a lawyer about whether a formal guardian of property appointment or the Children's Lawyer is needed.

Keep clear records of every amount received and spent for the child. Good records protect both the child and the adult managing the money.

Frequently asked questions