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In Ontario, a minor child (under 18) is not entitled to directly inherit funds. If a minor child is entitled to inherit (either under a will, or because of an intestacy) there are four options as discussed below. Remember, it is impossible to do ‘estate planning’ after death.
- The Will Establishes A Trust For The Child
- If The Amount Is Less Than $35,000
- Pay The Inheritance Into Court
- Pay It to The Child’S “Guardian of Property”
The Will may establish a trust, and name the trustee. The trustee could be the estate trustee or a different person. The trustee will hold the funds in the manner described in the Will. Pro: Clear. Testator choses trustee, and sets terms of trust (eg. Payments for the benefit of the child, ultimate release date, etc.) Con: Must be in the Will. Cost...
The funds can be paid to the parent of the child “in trust”. Pro: Low cost. Quick, easy. Access to funds for the benefit of the child during Con: Amount is capped. Requires financially prudent parent.
Funds can be paid “into Court” and the Court (the Province of Ontario) will hold the funds in trust for the child beneficiary until the child reaches age 18 at which time the child can withdraw them. Pro: “Low-ish” cost. A fee of 3% is charged on investment income credited to the minor’s account and on all payments out of court. In addition a care ...
A suitable guardian of property for a child can be appointed by the Courts. The inheritance can then be paid to this guardian, to be held in trust by them for the benefit of the child. The child’s parent is not automatically the child’s guardian of property. Background: A child’s parent is automatically a ‘guardian of the person’ for the child, but...
Feb 7, 2019 · In choosing an appropriate age, there are three primary factors that I will commonly discuss with clients to help make a decision: the size of inheritance. How Financially Responsible the Child Is Likely Be.
Oct 4, 2023 · Can a child under 18 receive an inheritance? A minor can inherit property or assets. However, there are specific legal mechanisms in place to protect and manage these inheritances until the child reaches the age of majority. One common approach is through the creation of a trust in an estate plan.
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Feb 7, 2022 · The rules of inheritance can be a little difficult to unravel especially if you’re wondering if a child under 18 can inherit. We will guide you through some of the important points around trusts, wills, and leaving minors gifts.
Nov 16, 2021 · If you die without a Will and your minor children are entitled to a share of your estate, they cannot simply receive the funds themselves, nor can the appointed guardians manage the money without a court order, unless the amount is less than $35,000.
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Nov 14, 2023 · When it comes to providing for minors (e.g. one’s minor children or grandchildren) using a trust under one’s will, there are three basic options: The will specifies that a minor’s share of the estate is held in trust by the executor or an independent trustee (the “trustee”) until the minor reaches the age of majority (currently ...
