Why Do I Need Guardianship to Manage My Child’s Money in Ontario?

It often comes as a shock at an already stressful time: your minor child (under the age of 18) is entitled to money, perhaps through an inheritance or a personal injury settlement, but you are told you cannot access or manage those funds without going to court. 

At first glance, this can feel confusing and frustrating. As a parent, you already make important decisions about your minor child’s health, education, and upbringing to ensure their wellbeing. Parents frequently assume that this responsibility extends to managing their child’s money. 

However, under Ontario law, there is an important distinction: while parents are entitled to make decisions about their minor child’s upbringing, that authority does not automatically extend to that child’s property (money).  

Why Don’t Parents Automatically Have Authority Over Their Minor Child’s Money? 

In law, a minor child’s money belongs to the child, not to the parent. However, minors are not considered legally capable of managing their own property, including money. The law, therefore, requires safeguards to ensure that those funds are protected and used in the child’s best interests until they reach the age of 18. 

Although parents can often informally handle smaller, everyday amounts without issue, the situation changes when a child becomes entitled to more significant funds, such as an inheritance or a legal claim. 

In those circumstances, many parents are surprised to learn that they must first obtain formal legal authority by applying to the court to become their child’s guardian of property before they can manage those funds. 

What Is a Guardian of Property in Ontario? 

A guardian of property is a court‑appointed decision-maker responsible for managing a minor child’s financial affairs on their behalf, including receiving, holding, and using the child’s funds in the child’s best interests, and accounting for those funds. 

Without a guardian of property, the minor child’s money will generally be paid into court and held there until the child turns 18. While this protects the funds, it can also create practical challenges if the money is needed during the child’s minority for expenses such as health care, education, or general support. 

Who Can Apply to Be a Guardian of Property for a Child in Ontario? 

Although parents generally have priority to be appointed as guardians of their child’s property, the appointment is not automatic. The court’s primary concern is always the child’s best interests.  

The Role of the Office of the Children’s Lawyer 

To ease the court’s concern about the child’s best interests, the Office of the Children’s Lawyer plays an important role in guardianship applications for minors. That office’s role is to act independently and provide a neutral perspective on any application for guardianship of a minor’s property.  

While the Office of the Children’s Lawyer’s involvement may seem unfamiliar or even intrusive, their only purpose is to protect the minor’s best interests and convey to the court its position regarding an application for guardianship. 

Is Guardianship of Property Right for Me and My Family? 

A guardianship application is not always necessary, or the right option.  

Leaving the funds in court may be the simpler and more cost-effective approach in some circumstances, such as when the amount involved is relatively small, a child will turn 18 in the near future, or there is no demonstrable need for the funds during the minority. In these types of circumstances, the Office of the Children’s Lawyer may recommend leaving the funds in court.  

Each situation depends on its own facts, and what makes sense for one child may not be appropriate for another. 

Summary 

A parent who has legal authority to make parenting decisions about their child’s upbringing is not automatically authorized to make decisions about that child’s money. In law, those are treated as two separate roles: one relating to the child’s wellbeing and the other to their money. 

When a child becomes entitled to significant funds, additional oversight is often required to ensure that those funds are protected and used in the child’s best interests. Typically, this means the money will be held by the court until the child turns 18, or until someone is formally appointed by the court to manage it through a guardianship application. 

Whether a guardianship of property is necessary depends on your specific circumstances, including the amount of money involved and the child’s needs. 

The author of this blog, Sanan (Sunny) Mirza, handles these types of applications and would be pleased to hear from anyone seeking to retain a lawyer to learn more about guardianship applications for minors and how you can apply to be a guardian of property.