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Protecting Children’s Settlement Funds: What Parents Should Know About Alberta’s Minors’ Property Act

When a child is injured and receives a settlement through a personal injury claim, protecting that money becomes a top priority. In Alberta, the Minors’ Property Act provides a legal framework to ensure that settlement funds awarded to minors are managed responsibly and used for their benefit. Understanding how this process works can help families make informed decisions and feel confident that their child's financial interests are protected.

Under the Act, if a child receives a settlement of more than $25,000, the funds must be held in trust and are typically managed by the Office of the Public Trustee or a court-approved private trustee. These trustees are responsible for safeguarding the funds until the child turns 18. For smaller settlements under $25,000, the court may permit a parent or guardian to manage the money directly, provided they meet certain requirements and agree to specific conditions.

Before a settlement involving a minor can be finalized, it must go through a court approval process. This begins with appointing a litigation representative, usually a parent or guardian, who acts on the child's behalf throughout the legal proceedings. Once a settlement offer is reached, the representative must swear an affidavit confirming that the settlement is fair and reasonable. Supporting documentation, including medical assessments and legal reports, is then submitted to the Office of the Public Trustee for review.

The Public Trustee's role is to review the proposed settlement, assess the reasonableness of legal fees and expenses, and ensure the outcome serves the child’s best interests. If the Trustee is satisfied, they provide a recommendation for the court. A justice of the Court of King’s Bench will then review the full application and may approve the settlement or request additional information if needed. This process adds important safeguards to ensure transparency and accountability.

Even after a settlement is approved, parents or guardians may continue to have responsibilities. If they are permitted to manage the funds directly, they must sign a formal acknowledgment promising to use the money solely for the child’s benefit and to provide an accounting when the child reaches adulthood. For larger settlements held by the Public Trustee, the funds are securely invested until the child turns 18, at which point the child receives a full accounting and the remaining funds.

If your child has been injured, Weir Bowen LLP can help guide you through the legal and financial process. Contact us at 780-424-2030 or by completing our intake form to explore your options.

Posted on August 5, 2025

The contents of this post are for general information only, and should not be construed as legal advice.
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