- If a child is to receive $35,000 or less, the money usually need not go into court and may be paid to the parent the child lives with or the person with lawful custody.
- Above $35,000, the money is paid into court and held by the Accountant of the Superior Court of Justice unless a court-appointed guardian of property is in place.
- A guardian of property must generally post a bond, keep accounts, invest as the approved plan directs and transfer everything to the child at 18.
- Because the rules turn on the amount and the paperwork, it is worth getting advice before money reaches a child.
Someone has left money or property to your child, and your child is under 18. You may wonder whether you can simply receive it for them, whether a court gets involved, and what happens when your child turns 18.
In Ontario, the answers depend mostly on how much the child is to receive and on whether a court-appointed guardian of property is already in place. This article explains the general picture so you know what questions to ask.
Why a minor cannot simply receive an inheritance
A child under 18 generally cannot manage significant money or property on their own. Someone has to hold and look after it for them, and the law sets rules about who that person is and how closely they are supervised.
The estate trustee is the person responsible for collecting the estate's assets, paying taxes and debts and distributing the remainder according to the will and the law. When a child is to receive money, the route it takes depends on the amount.
The $35,000 dividing line
Ontario's guidance on a child's money draws a line at $35,000. The amount determines whether a court is involved.
| Amount the child is to receive | What generally happens |
|---|---|
| $35,000 or less | The money usually need not go into court and may be paid to a parent the child lives with or the person with lawful custody. |
| More than $35,000 | The money is paid into court and held by the Accountant of the Superior Court of Justice, unless a court-appointed guardian of property is in place. |
If you are expecting an inheritance near this line, confirm the current threshold and how the estate's total share for the child is counted, since that can affect which route applies.
Guardian of property: what the role involves
A guardian of property is a person appointed by a court to manage a child's money and property. Parents are preferred for the role.
- The guardian must generally post a bond, although this can be waived for a parent.
- The guardian must keep accounts.
- The guardian must invest as the approved plan directs.
- The guardian must transfer all property to the child at 18.
These duties exist so that the child's money is protected and can be traced. If you are considering applying, a lawyer can explain the process and what the court will want to see.
If the money is held in court
Money held in court is not frozen for every purpose. Parents can request payments for the child's direct benefit from money in court through the Minors' Funds Program, which is run through the Office of the Children's Lawyer.
The Office of the Children's Lawyer may also be involved in estate matters more broadly. It may act for children under 18 or for unborn persons, and it must be served on an application to pass estate accounts where a minor or unborn or unascertained person has an interest. It can also ask an estate trustee for accounts and supporting records, and if the trustee does not respond or the accounts raise concerns it may ask the court for an order requiring the trustee to bring an application to pass accounts.
What happens at 18, and what to do next
At 18, a court-appointed guardian must transfer all property to the child. A young adult may receive a large sum all at once, which is why some families look at whether the person leaving the inheritance set up a trust with a later age for payment. Whether that is possible depends on the wording of the will or other document, so it is worth reading it carefully.
- Get a copy of the will and find out the total amount your child is to receive.
- Ask the estate trustee when payment is expected and in what form.
- Check whether a guardian of property already exists for your child.
- Keep records of anything you receive or spend for your child.
- Speak to a lawyer before accepting a large payment on your child's behalf or applying to be guardian.
Frequently asked questions
Can I just collect my child's inheritance as their parent?
For $35,000 or less, the money usually need not go into court and may be paid to a parent the child lives with or the person with lawful custody. Above that amount it is paid into court unless a court-appointed guardian of property is in place.
Who looks after money that is paid into court?
It is held by the Accountant of the Superior Court of Justice. Parents can request payments for the child's direct benefit through the Minors' Funds Program via the Office of the Children's Lawyer.
What happens when my child turns 18?
A court-appointed guardian of property must transfer all property to the child at 18. If the will set up a trust with different terms, the document itself governs, so have a lawyer review it.
Does the Office of the Children's Lawyer have a role?
It may act for children under 18 or unborn persons, and it must be served on certain applications, including an application to pass estate accounts where a minor has an interest. It can also ask an estate trustee for accounts and records.
Sources
- Ontario – Guardianship of a child's money and property — ontario.ca
- Ontario – Office of the Children's Lawyer and estates and trusts matters — ontario.ca
- Ontario – Administering estates — ontario.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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