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Find out some important estate planning information if you have minor children in this short article. In British Columbia, all children under the age of 19 are considered to be "minors". There are some significant legal issues that you should be aware of if you have minor children. Here are some of the most important. 1. Minors Cannot Hold Property Minor children cannot hold property of their own accord. It is extremely important to realize this if you are planning on leaving gifts to children in a will or if you have designated them as the beneficiaries of your life insurance or retirement plans (RRSPs, RRIFs, pension plans). Rather than leaving the property to them outright, you must set up a trust for them and have a trusted individual (e.g. a relative) hold the money or property for them and administer it for their benefit until they reach an age of your choice (e.g. 25 or 28 etc ...) when the money or property can be paid to them outright. If you do not do this, the money or property will be payable to the Public Guardian and Trustee who will then administer it for them until they reach age 19. Most people do not want this. 2. Appointment of Guardians It is critical to appoint a guardian for your minor children in your will. If you do not do so, a court application will have to be made (at great expense) and the court will appoint someone as the guardian. The court may not appoint the person or persons that you would have wanted. You need to do this even if your children are teenagers! 3. Use Trusts Following on from point #1 above, the use of trusts (whether in a will or separately) is critical for the care of minors. If you set up a proper trust, money can be paid out for the benefit of the child before they reach the age of majority for such things as their personal care, health care, living expenses, and education. In addition, you can decide at what age they receive the capital of the money so that it is not paid to them too early at an age when they might not be reponsible with it. This article is not comprehensive. Please call us if you have any questions about the legal issues affecting your children. |
