Minor Beneficiaries in Alberta: Who Holds the Inheritance?

In Alberta, a minor is anyone under 18, and money owed to a minor may be held by the Public Trustee or a trustee, or, where the amount is under $25,000 and no trustee is named, paid to a parent or guardian. If you are a parent, guardian or executor, you may be wondering who holds the money, who decides how it is used, and when the child finally receives it.

Alberta has a defined process for this, and the Public Trustee is part of it. The answer depends on the size of the gift, whether a trustee was named, and what the will or trust says, so this article walks through the usual paths.

This article covers the law of Alberta.

What counts as a minor, and why the Public Trustee is involved

In Alberta, a minor is anyone under 18. When a minor is a beneficiary of an estate, the Public Trustee must review the grant application. Where the deceased is survived by a minor child, the Public Trustee must be served on the grant application, and the application must not proceed until the Public Trustee is represented or has said it will not be.

This review is a safeguard. It does not mean the Public Trustee automatically takes over the money. The Public Trustee may manage a minor's share only when no one else can.

Who can hold the money for the child

• The Public Trustee, which holds a minor's funds in its Common Fund and guarantees the money in full.
• A parent or guardian, who may apply to the court to be the minor's trustee if no trustee was named or the Public Trustee is not required to be trustee. A bond is usually required.
• A trustee named in a trust document, where the gift is held in trust for the child. The details are set by that document, so read it closely.

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.

Smaller amounts and special cases

If a minor is owed under $25,000 and no trustee is named, the person paying may give the funds to either the Public Trustee or a parent or guardian. Workers' Compensation amounts must go to the Public Trustee regardless of size.

Land is different. Land transfers involving a minor's interest need the Public Trustee's consent. If you are dealing with a house or other real property that a child will share in, expect extra steps and get advice early.

When does the child get the money?

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 a trust document sets a particular age for payment, that is the age that applies, and the Public Trustee has no power to move it earlier or later.

The executor also has timing duties of their own. The personal representative must not distribute any part of the estate to a beneficiary until 6 months after the grant, unless all family members consent or the Court authorizes it. Before the 6 months end, reasonable advances may be made for the maintenance of family members who are beneficiaries.

When accounts are formally passed, the court may direct payment of money owed to a minor to the Public Trustee or another trustee.

What to do next

• Confirm each beneficiary's age and whether any are under 18.
• Read the will for a named trustee, an age for payment, or both.
• Expect the Public Trustee to be served when a minor child survives the deceased.
• If you are a parent wanting to act as trustee, ask a lawyer about the court application and the bond.
• Keep records of anything paid out for the child, since the personal representative must account for the estate.

Every estate is different. A lawyer can confirm which route fits your family and prepare the court documents.

Frequently asked questions