What Happens When a Child Under 18 Inherits an Estate in Alberta?

If someone has died and a child under 18 is due to receive something from the estate, you may wonder who looks after the money and when the child gets it. A child cannot manage an inheritance alone, so Alberta has a set process that brings in the Public Trustee.

This article explains the usual steps, the choices a parent or guardian may have, and the points where a lawyer can help. Details depend on the facts of the estate, so treat this as general information.

This article covers the law of Alberta.

The Public Trustee gets involved early

In Alberta, a minor is anyone under 18. When a person dies survived by a minor child, the Public Trustee must be served on the grant application. The application must not proceed until the Public Trustee is represented or has said it will not be.

More broadly, the Public Trustee must review all grant applications in Alberta where a minor is a beneficiary of an estate. In practice, this means the person applying for the grant should expect an extra step and some extra paperwork before the estate can move forward.

If there is no will, the Wills and Succession Act decides who inherits. If there is no surviving spouse or adult interdependent partner, the estate goes to the person's descendants, with each surviving child taking one share and a deceased child's share passing to that child's descendants. If there is a surviving spouse or partner and all the descendants are also descendants of that spouse or partner, the entire estate goes to the spouse or partner. If some descendants are not also descendants of the spouse or partner, the spouse or partner gets the greater of $150 000 or 50% of the net value of the estate, and the rest goes to the descendants.

Who manages the money until the child is older

The Public Trustee may manage a minor's share only when no one else can. So where a trustee has been named or a suitable person is available, that is often the starting point.

• The Public Trustee holds a minor's funds in its Common Fund and guarantees the money in full.
• 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.
• On a passing of accounts, the court may direct payment of money owed to a minor to the Public Trustee or another trustee.

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.

Trusteeship orders and the child's consent

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 you are a parent or guardian thinking about applying, a lawyer can explain what the court will look at and what a bond involves in your situation.

Smaller amounts, special cases and land

Note that in the under $25,000 situation, it is the payer who may choose between the two options.

When the child receives the money, and what to do next

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. If you want a different age, that is a question about how the trust was set up, and it is worth asking a lawyer.

Timing of the estate itself also matters. 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 those 6 months end, the personal representative may make reasonable advances for the maintenance of family members who are beneficiaries. A personal representative must also account at regular intervals, and unless the court orders a longer or shorter period, that accounting is due every 2 years after the date of death.

• Find out whether the deceased left a minor child or named a minor as a beneficiary.
• Check the will for any named trustee or age for payment.
• Make sure the Public Trustee is served on the grant application if there is a minor child.
• Decide whether a parent or guardian wants to apply to be the trustee, and gather what a bond may require.
• Talk to a lawyer before transferring land or accepting payment on a minor's behalf.

Frequently asked questions