In Alberta, wrongful death settlement funds awarded to a minor child cannot simply be handed to their surviving parent. By law, these funds must be held and managed by the Office of the Public Guardian and Trustee (OPGT) until the child turns 18.
Protecting the Financial Future of Grieving Children
Losing a parent to a sudden accident is an unimaginable trauma for a child. When a fatal accident occurs in Calgary, the surviving family typically pursues a wrongful death lawsuit to recover the massive loss of future financial support. Under the Alberta Fatal Accidents Act, specific portions of the final settlement are legally designated directly to the surviving children, including damages for loss of care, guidance, and companionship.
A common misconception is that the surviving parent or guardian will receive a massive cheque to use at their own discretion for the family’s needs. 💰 However, Canadian law is extremely protective of minors’ financial rights. To prevent funds from being mismanaged, stolen, or squandered by guardians, the province requires a strict legal mechanism to oversee the child’s money until they become a legal adult.
Step-by-Step Process in Alberta
When a wrongful death lawsuit concludes, dealing with the portion of money allocated to minor children requires careful navigation. The courts and the Office of the Public Guardian and Trustee (OPGT) must approve every step of the payout process.
Step 1: Finalize the Court Order or Settlement
Before any money changes hands, a judge at the Court of King’s Bench must officially review and approve the settlement if it involves a minor. 📄 The judge ensures that the amount allocated to the child is fair and accurately reflects their immense loss of parental support and bereavement damages.
Step 2: Transfer Funds to the OPGT
Once the at-fault party’s insurance company issues the settlement cheque, the funds designated for the minor are sent directly to the Office of the Public Guardian and Trustee of Alberta. The OPGT opens a dedicated trust account in the child’s name, safely investing the money so it earns interest over time.
Step 3: Requesting Funds for Extraordinary Needs
Generally, the money sits untouched. However, if the child requires funds for extraordinary needs (like specialized medical care, specialized tutoring, or essential equipment) that the surviving parent cannot afford, the guardian can apply to the OPGT for an early release of specific funds. 📝 The OPGT scrutinizes these requests closely to ensure the money is strictly used for the child’s direct benefit.
Step 4: Final Disbursement at Age 18
On the child’s 18th birthday, they officially become a legal adult in Alberta. The OPGT will release the entire principal amount, plus all accumulated interest, directly to the young adult, giving them a vital financial foundation as they enter post-secondary education or the workforce.
How Much Does it Cost in Calgary?
Managing a minor’s settlement involves specific legal and administrative deductions before the child receives the final amount:
- Lawyer Contingency Fees: The personal injury law firm’s legal fees (typically 30% to 33%) are deducted from the global settlement before the child’s net portion is sent to the OPGT.
- Court Filing Fees: The standard $250 CAD fee to file the initial claim at the Court of King’s Bench is typically absorbed by the estate’s overall costs.
- OPGT Administration Fees: The provincial government does not manage the funds for free. The OPGT charges modest administrative and investment management fees, which are deducted directly from the interest earned on the child’s trust account.
- Judicial Review Costs: Getting a judge to approve a minor’s settlement often requires drafting specific legal affidavits, the cost of which is usually covered under the law firm’s initial fee agreement.
How Long Does the Process Take?
The timeline for a minor receiving their funds is entirely dependent on their age at the time of the settlement. ⌛ The wrongful death lawsuit itself usually takes 2 to 4 years to resolve in the Alberta court system. Once the OPGT receives the settlement cheque, the funds are locked in.
If a child is 5 years old when the lawsuit settles, the OPGT will manage that money for 13 years. The final payout process is relatively swift; once the child turns 18 and provides proper identification to the OPGT, the funds are typically transferred into their personal bank account within a few weeks.
| The Surviving Parent | Cannot freely access the child’s settlement funds. Must fulfill normal parental duties independently. |
| The OPGT (Government) | Holds, invests, and protects the principal settlement money securely until the child’s 18th birthday. |
| The Court of King’s Bench | Must review and approve the initial settlement to ensure it is in the child’s best financial interest. |
| The Adult Child (Age 18) | Receives full, unrestricted access to the total accumulated funds upon turning 18. |
Frequently Asked Questions (FAQ)
Can the surviving parent use the money to pay for family groceries or rent?
No. Under Alberta law, parents have a legal obligation to provide the basic necessities of life for their children. The OPGT will generally deny any request to use the child’s settlement money for standard household expenses, rent, or groceries.
What happens if the child needs a vehicle for school?
The parent can submit a formal application to the OPGT requesting funds for specific major purchases that benefit the child’s development or education. The OPGT reviews these on a case-by-case basis, but approval is never guaranteed.
Does the money just sit in a bank account?
No, the Office of the Public Guardian and Trustee pools the funds they manage and invests them conservatively. The goal is to ensure the settlement money grows and keeps pace with inflation while protecting the core principal amount from risk.
Can the child get the money at age 16 if they are emancipated?
Generally, no. The OPGT’s mandate in Alberta is strictly tied to the age of majority, which is 18. Unless there is a highly unique court order dictating otherwise, the funds will remain locked in trust until their 18th birthday.
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