What Happens When a Minor Inherits Property in Nova Scotia

If a child is named in a will, or is entitled on an intestacy, you may wonder who looks after the money and when the child gets it. A parent does not automatically hold a child's inheritance in the way many people expect.

This article explains the usual path in Nova Scotia, the role of the Public Trustee, and what an executor should do when a beneficiary is a minor.

This article covers the law of Nova Scotia.

Who is a minor

Under the Age of Majority Act, a person attains the age of majority and ceases to be a minor at nineteen. The Public Trustee is by law the guardian of the estate of every child unless a court appoints someone else, and it holds a child's inheritance until the child turns 19, unless the will or trust document sets an older age.

Who holds the money

The Public Trustee is by law the guardian of the estate of every child unless a court appoints someone else. It holds a child's inheritance until the child turns 19, then prepares an account and a release for signature, unless the will or trust document sets an older age. Apart from that exception, the Public Trustee may hold back funds when the child turns 19 only if there are signs the child may lack the mental capacity to manage their finances.

This means a parent is not automatically the one who controls the funds. How this applies to you depends on your situation, so it is worth confirming with a lawyer if you want to manage a child's property.

When the child gets the money

The usual point is age 19, but there are exceptions. The will or trust document may set an age older than 19. The Public Trustee may withhold funds at 19 if there are signs the child may lack the mental capacity to manage their finances, or if the will or trust document sets an older age.

• Read the will carefully for any trust terms or a later age.
• Expect an account and a release to be signed when the funds are paid out at 19.
• Ask a lawyer if the child may have difficulty managing money because of capacity concerns.

What the executor should do

Within 30 days after a grant is issued, the personal representative must serve notice of the grant on each person who is or may be entitled to share in the estate, and proof of service is due within 60 days; the registrar may extend these times. A child who is a beneficiary is one of those people, so ask a lawyer who should receive the notice on the child's behalf.

The personal representative must also keep accurate records of all property and debts of the estate. Clear records help when the estate accounts are reviewed and when the Public Trustee receives the child's share.

If there is no will

Where there is no will, the Intestate Succession Act decides who inherits. If the surviving spouse takes a share, the children share the rest. Only married spouses and registered domestic partners count, because unmarried common-law partners have no intestacy rights under the Act. When a child inherits, the Public Trustee is by law the guardian of the child's estate unless a court appoints someone else, and on an intestacy it can also rank third in priority to administer the estate.

What to do next

• Confirm the child's age and whether they are under 19.
• Check the will for a trust or an age older than 19.
• Tell the Public Trustee and the estate's lawyer that a minor is a beneficiary.
• Serve the notice of the grant on time.
• Keep full estate records for the accounts.

Frequently asked questions