Can a minor child inherit?

Did you know that in Ontario, a minor child (under 18) is not entitled to directly inherit funds?

However, this doesn’t prevent them from being named as beneficiaries. Since minors cannot manage their own property until they reach 18, here’s how it’s typically handled:

If there is a Will:

The Will can establish a trust and appoint a trustee, who could be the estate trustee (executor) or another individual. This trustee will manage the inheritance according to the Will’s terms. This method provides the most control, allowing the testator to set conditions for when and how funds are distributed.

If There Is a Will Without a Trust Provision or No Will:

For Amounts Over $35,000: The child's inheritance is paid into court, managed by the Accountant of the Superior Court of Justice, until the child turns 18. Alternatively, the court may appoint a guardian of property to manage the funds. If you need to access funds for the child’s expenses, you can request money through the Office of the Children’s Lawyer Minors’ Funds Program.

For Amounts Under $35,000: If the inheritance is less than $35,000, it can be paid to the child’s parent or legal custodian, who must manage the funds until the child turns 18. In cases where the child has a legal obligation to support someone else, the funds can be released to the child. The responsible party must manage the money appropriately. There is also the option to pay the money into court.

For Minors Named as Beneficiaries of Life Insurance:

With a Named Trustee: If your child is a life insurance beneficiary and a trustee is named, the trustee should obtain the beneficiary designation form from the insurance company, to determine any terms of trust that may be outlined there, including payment conditions and timelines. Without specific terms, the trustee must hold and invest the money until the child turns 18, without using the funds for other purposes.

Without a Named Trustee: If no trustee is named and the amount exceeds $35,000, the funds are paid into court or managed by a court-appointed guardian of property until the child turns 18. For amounts under $35,000, the funds can be given to the child’s parent or legal custodian, who will manage the money until the child reaches adulthood. If needed, requests for funds can be made through the Office of the Children’s Lawyer Minors’ Funds Program.

The above are just a few reasons to prepare a proper Will and estate plan with a skilled lawyer who can address inheritances to minors. For more details on managing a child's inheritance or responsibilities of a guardian of property, contact us.