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Can a minor own property? – and other real estate questions
Thanks for writing, Suniel. Leaving a gift for our minor dependents in our estate plans is a great way to provide for their future. Let’s review what a minor beneficiary is, who is responsible for the beneficiary, and how property can be given to them in a will or otherwise.
Technically speakingwWhat is underage?
Depending on the federal state, the age of majority is 18 or 19. In Ontario, for example, a child at 18 is no longer considered a minor. If someone is under the age of majority in their province, they cannot enter into legal contracts and a parent or guardian will support them into adulthood.
In Ontario, if a minor child is named as a beneficiary in a will or is to inherit under the Succession Law Reform Act in the absence of a will, the executor, who is the person responsible for administering the estate, must take a few steps. One of the responsibilities of an executor is to notify the heirs of the estate of their inheritance. If the beneficiary is a minor, the executor will also notify the child’s parent or guardian and the Office of the Children’s Advocate, which is an independent law firm within the Attorney General’s Department.
Minors as beneficiaries
Since a minor cannot enter into legal contracts, a lawyer represents the child’s interests in legal matters and in court. The lawyer in charge of the file examines the administration of the estate, while the inherited assets of the child are kept “in trust” until the child comes of age.
Imagine holding “in trust” as bail for the child. The executor holds the gift on behalf of the child in the name of the estate until it can be transferred directly to them. For example, if it is money in a bank account, the name would be: “Estate of Sara Smith, in trust for John Smith.”
This naming approach can be used for bank accounts, real estate and investment accounts. Naming the asset in this way ensures that the item is identified as part of the estate while being held for a specific person.
How to give property to a child
When we write a will or create an estate plan, we look at what we want to leave and to whom. And we can get pretty creative, Suniel. Hiring professionals to help you with estate planning can be beneficial. If you choose to bequeath your home to minor children in particular, the home will be held in trust for them until they reach the age of majority in the state where the property is located and can take title of the home.
Some questions to discuss with your solicitor when letting someone or more people, especially minors, in your property include: