This web page explains the Public Trustee's function if a minor child becomes entitled to receive money or property.

In Alberta anyone under the age of 18 is a minor.

The Public Trustee is appointed by the Alberta Government under the Public Trustee Act. Authority of the Public Trustee is found in the Public Trustee Act and other provincial statutes. The Public Trustee maintains offices in Calgary and Edmonton. The offices are staffed by trust administrators, lawyers, taxation officers, auditors and support staff.

The primary functions of the Public Trustee are to

• protect minors’ property interests;
• act as trustee for people with mental disabilities;
• act in the administration of deceased persons’ estates.

The Public Trustee’s policy is to step in only where it is necessary or appropriate to protect the financial interests of vulnerable Albertans.

Parents or guardians have legal authority to make personal decisions for minors in areas such as education, medical care and social activities. However, a minor’s parent or guardian does not automatically have authority to receive and look after money or other property to which the minor is entitled.

The general rule is that someone who holds property (including money) with a value in excess of $5000 to which the minor is entitled must deliver the property to the Public Trustee for safekeeping. Examples of where the Public Trustee receives money or other property to look after for a minor include:

1. a minor inherits property where there is no Will or under a Will that does not appoint a trustee to look after the property for the minor;
2. a minor is injured and receives money under a legal settlement or court judgment;
3. a minor is designated as the beneficiary of an insurance policy or pension plan that does not appoint a trustee to look after the benefits for the minor;
4. a minor wins a lottery or other game of chance.

The general rule does not apply if a minor’s entitlement arises under an instrument, such as a Will, that explicitly appoints a trustee to receive and look after the property on behalf of the minor. The law respects the trust creator’s decision to entrust someone other than the Public Trustee with responsibility for looking after the property on behalf of the minor, even if the value of the property greatly exceeds $5000.

If a minor is entitled to property worth more than $5000, so that it would ordinarily have to be delivered to the Public Trustee, a parent or guardian who wishes to look after the property may apply for a Court Order to appoint them trustee of the minor’s property. The Court may appoint a trustee of the minor’s property only if satisfied that it is in the minor’s best interest to do so, and the Court is likely to require the trustee to provide a bond or other form of security. A person who is appointed trustee of a minor’s property by a Court Order will be accountable both to the minor and to the Court for the proper administration of the minor’s property.

In most circumstances, a person who holds property with a value of $5000 or less to which a minor is entitled may deliver the property to a parent or guardian who has responsibility for making day-to-day decisions affecting the minor. The person delivering the property to the parent or guardian is protected only if they obtain a signed Acknowledgement of Responsibility from the parent or guardian. The parent or guardian who receives the property does so as trustee for the minor and must use the property for the benefit of the minor.

Benefits payable to a minor under the Victims of Crime Act or section 70(9) of the Workers Compensation Act must be paid to the Public Trustee, even if the amount is under $5000.

Money received by the Public Trustee for a minor is usually invested in the Public Trustee’s common fund. The amount invested in the common fund is credited to the client’s guaranteed account. The Province of Alberta guarantees payment of the full amount that has been credited to a minor’s guaranteed account, including interest.

Interest is credited to minors’ guaranteed account. The interest rate is set by the Public Trustee in accordance with legislated criteria and fluctuates depending on market conditions.

In most cases, the Public Trustee may make expenditures out of property held for a minor if the Public Trustee believes that the expenditure would be in the minor’s best interest. Factors that might affect the Public Trustee’s decision include:

• the source of the property;
• the purpose of the proposed expenditure;
• the obligation of a minor’s parents to provide for the minor’s maintenance and support out of their own resources;
• the circumstances of the minor;
• the size of the estate.

The Public Trustee cannot make an expenditure that would conflict with the express terms of a Will or other trust instrument or a Court Order.

Funds will be held until the minor reaches 18 years of age, unless a later age is specified in a Will or document establishing the trust. An accounting is provided by the Public Trustee before the balance of the trust account is released.

Yes. Fees are subject to review by the person receiving the funds. If that person disagrees with the fees, the Court has the authority to review them.

The Public Trustee's responsibilities end upon the death of a minor. The Public Trustee will release the minor’s property to the personal representative of the minor's estate, who is responsible for distributing the property according to law.

You may contact either office of the Public Trustee with general questions about minors’ trusts. If you are a long-distance caller within Alberta, you may call toll free by telephoning 310-0000 and then dialling (780) 427-2744 (for the Edmonton office) or (403) 297-6541 (for the Calgary office).

Additional general information may also be obtained through Dial-A-Law at 1-800-332-1091.

We cannot give legal advice.

Your best source of information about a specific trust not held by the Public Trustee is your lawyer.