Two new bills will update and clarify provincial legislation that protects the financial interests of minors and other vulnerable Albertans.

The Public Trustee Act (Bill 19) will replace existing legislation governing the Public Trustee. The Public Trustee protects the property of minors, vulnerable adults and deceased persons where no one else is able to do so. The Minors' Property Act (Bill 20) updates existing legislation that deals with the administration of minors' property and the process for reaching binding settlements of minors' legal claims.

"The Public Trustee and those who administer property on behalf of minors fulfill an important role on behalf of many vulnerable Albertans," said Justice Minister Dave Hancock. "These new bills will ensure provincial laws regarding the Public Trustee and the protection of minors' financial interests are up-to-date to protect these Albertans."

The updated acts are the result of a full review of the legislation and a consultation with the legal and insurance industries, estate planners and administrators, and other interested members of the public in 2002. Aside from updating existing legislation, these bills will also remove provisions that have become obsolete or redundant since they were originally passed.

New or revised provisions in the Public Trustee Act include:

• The principles of prudent investment-which have been adopted in nearly all Canadian provinces and most American jurisdictions-will be applied to the investment of assets by the public trustee. Under this rule, the trustee may use diversification of a portfolio as a means of controlling risk instead of simply relying on a list of approved investments.
• Regulations will establish criteria to be applied by the Public Trustee when setting the interest rate payable on clients' money invested in the government-guaranteed "common fund."
• Regulations will clarify the circumstances in which the Public Trustee may make separate investments for a client, as an alternative to investing the client's funds in the common fund. The current legislation provides no guidance in this area.
• Where the Public Trustee is holding property for a minor, the legislation enhances the Public Trustee's ability to make expenditures that will benefit the minor, e.g. for education.
• The legislation makes it easier for the Public Trustee to preserve, protect and administer a deceased person's estate if an executor or other person has not stepped forward to do so within a reasonable time.
• A person who creates a trust for a minor and appoints a third party to be a trustee, will be given the option of appointing the Public Trustee to monitor the trustee for a fee to be determined by regulations.

The guiding principle of the Minors' Property Act is that reasonable steps should be taken to ensure that actions affecting a child's property or legal rights are in the child's best interest. New or revised provisions in the Minors' Property Act include:

• Existing provisions that allow a court to authorize a sale of a minor's property, when it is in the minor's best interest, will be simplified.
• The court will be able to require someone to deliver property of a minor to the Public Trustee for safekeeping in situations where the property is at risk.
• The legislation will clarify what happens when someone holds property to which a minor is entitled. Depending on the circumstances, the person will be able to deliver the property to the minor, to the minor's parent or guardian, to an appointed trustee, or to the Public Trustee.
• The legislation will clarify the procedure by which the court may appoint a trustee of a minor's property. The bill includes criteria to be considered by the court when deciding whether it is in the minor's best interest to appoint a trustee, as well as whether a trustee must provide a bond or other security.

• The court will be empowered to confirm any contract entered into by a minor or by a minor's guardian on behalf of the minor. Court confirmation would give the contract essentially the same effect it would have if the minor entered into the contract as an adult.

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Justice Web Site: http://www.gov.ab.ca/just/

• Alberta's office of the Public Trustee currently manages cases on behalf of approximately 13,700 clients.
• Of the trust funds and client assets currently being administered by the Public Trustee, 46% are on behalf of children, 39% are on behalf of dependent adults, and 15% are on behalf of deceased persons and other trusts.
• According to a client survey for the 2002-03 fiscal year, the office achieved a satisfaction rating of 90% for responsiveness to service requests and quality of services provided to clients.

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