What Happens to a Minor Child's Inheritance When There Is No Will in Ontario?

When a parent dies without a will in Ontario and leaves behind young children, a layer of legal machinery automatically kicks in — one that most parents would never choose if they had thought about it. Under Ontario's Succession Law Reform Act (SLRA) and the Children's Law Reform Act, minor children cannot directly receive an inheritance. Instead, their share must be held in a court-supervised trust until they turn 18.

Understanding what this means in practice — who controls the money, how the surviving parent accesses it, and what happens when the child reaches adulthood — is essential for any parent who has not yet made a will.

Why Minors Cannot Simply Receive Money

Ontario law treats children under 18 as legally incapable of managing property over a relatively low threshold (as of writing, verify the current threshold with a lawyer, as it is set by regulation). This is a protective rule, but when combined with intestacy, it produces a structure the surviving parent often finds difficult to navigate.

The child is entitled to the money. But they cannot hold it, spend it, or direct it. Someone else must.

The Role of the Office of the Children's Lawyer

When a minor child is entitled to an inheritance and there is no will naming a trustee, the Office of the Children's Lawyer (OCL) — a provincial government office — typically steps in to protect the child's financial interests. The OCL does not actually hold the money in most cases; rather, it supervises the arrangement and may require the estate trustee or the surviving parent to post a bond (a form of financial security) before funds are released to them as trustee for the child.

The OCL may also require:

• A formal passing of accounts (a court review of how the money was managed) periodically or at the end of the trust
• Reporting on how the funds are invested
• Approval before the trustee makes certain expenditures from the trust on behalf of the child

This is oversight that comes from a judge, not a parent. The surviving parent does not have automatic authority to spend the child's inheritance as they see fit.

Can the Surviving Parent Access the Funds for Day-to-Day Expenses?

This is one of the most practically difficult aspects of intestacy with minors. If a significant share of the estate belongs to the children, the surviving parent — even if they are the estate trustee — generally cannot freely dip into those funds for household expenses. Expenditures must be reasonable and documented, and depending on the value involved and the court's requirements, the parent may need approval before accessing the money for things like education, medical costs, or even everyday needs.

This is in stark contrast to what most people intend: "if something happens to me, my spouse handles everything for the kids."

The Child Receives the Full Sum at 18 — No Conditions

When the child turns 18, the trust ends and the full balance is paid out. There is no discretion to delay, and no conditions. A teenager legally becomes an adult at midnight on their 18th birthday and is entitled to whatever was held in trust — which could be tens or hundreds of thousands of dollars.

Many parents find this outcome troubling. A properly drafted will, by contrast, can:

• Delay distribution to ages like 21, 25, or 30
• Allow the trustee to advance funds for education, health, or other specific purposes before the scheduled distribution age
• Give the trustee discretion to hold funds longer if a child is going through a difficult period

None of this flexibility exists under intestacy.

What If Both Parents Die? The Guardian Problem

If both parents die (for example, in a common accident) and there is no will, no guardian is named for the minor children. The surviving family must apply to the court to be appointed as guardian of the children's property and potentially their person as well.

This means:

• A court decides who raises your children if the parties cannot agree
• Multiple family members (grandparents, aunts, uncles) may all apply, leading to litigation
• The children may experience instability while the process unfolds

A will allows parents to name both a guardian of the person (who raises the children) and a trustee of the estate (who manages the money), which can be the same person or different people.

How Much Is Held in Trust?

The amount held in trust for the child depends on the intestacy formula and the size of the estate. If the estate is substantial, the child's share could be large. Even a modest estate can produce a trust large enough that OCL involvement and court supervision become a practical burden.

Bear in mind that not all assets form part of the estate. Life insurance with a named beneficiary, RRSPs with beneficiary designations, and jointly held property pass outside the estate entirely. The intestacy rules only govern what passes through the estate itself.

Registered Education Savings Plans (RESPs)

A note on RESPs: these are not governed by the intestacy rules at all. An RESP is a contract with a financial institution, and what happens to it on the subscriber's death depends on the plan terms and whether a successor subscriber was named. The estate may have some rights over RESP assets, but this varies. Verify with a financial advisor or lawyer.

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