If you have minor children as beneficiaries on your life insurance policy, you want to appoint a trustee.
Did you know that a child under the age of 18, referred to legally as a minor, is actually not allowed under the laws of Ontario to directly receive a substantial inheritance?
This is true whether the inheritance is a cash gift or some other asset. Also, a parent does not automatically have the right to control their minor child’s inheritance unless the inheritance is held in a trust.
A minor’s inheritance may be governed by the terms of a trust. A trust may be included in a will or in a separate document. A person who manages a minor’s inheritance under a trust is called a trustee. The estate trustee or executor (the person who administers the estate) and the trustee could be the same person or could be someone else such as the parent of the child. The appointment of a trustee is usually spelled out in the will or trust document. When we describe the duties and responsibilities of an executor below, similar duties and responsibilities apply to a trustee or a minor’s guardian of property.
E&OE
