In Ontario, a parent is automatically the guardian of person of his or her minor child. However, a parent is not automatically the guardian of property for that minor child. A parent can only receive and manage property on behalf of a child by law, court order, or other documents.

Minor children may be entitled to property or a large amount of money under various circumstances. For example, a child may be entitled to monetary compensation under an insurance policy.

How can a parent obtain authority to manage and hold property on behalf of his or her child?

The Children’s Law Reform Act* stipulates that if the value of the property is under $10,000, the parent or custodian may receive it on behalf of the child.

Alternatively, a parent may make an application before the court to be appointed as the guardian of the property of the child. By law the Office of the Children’s Lawyer must be notified of the proceeding, so that the minor’s interest may be adequately protected.

Once appointed, the guardian of property must keep careful records (called “accounts”) of all dealings respecting the property. The guardian also must comply with Trustee Act requirements for the investment of trust funds.

Finally, once the minor turns 18, the guardian will have to transfer of the child’s property to the child.

* R.S.O. 1990, c. C.12 (as am.)

Note: Please keep in mind that this article is provided for information and educational purposes. It does not constitute legal advice and should not be regarded as such. The law may have changed since the publication of the article.