When minor children receive a wrongful death settlement in Nova Scotia, the agreement must be formally approved by the Supreme Court. The funds are typically managed by the Public Trustee or a court-appointed guardian in a secure trust until the child reaches the age of 19, ensuring their financial future is fully protected.
The sudden loss of a parent is an unimaginable tragedy that shatters a child’s world. Beyond the profound emotional devastation, the death of a mother or father also removes a critical source of financial support and daily care. 💔 In Nova Scotia, the Fatal Injuries Act allows the surviving family to seek compensation to replace the lost income and guidance that the deceased parent would have provided to their children over the years.
However, the legal system places extreme safeguards on money belonging to minors. You cannot simply accept a settlement cheque from an insurance company and put it into your own personal bank account, even if you are the surviving parent. The province has strict rules to ensure that a child’s compensation is preserved for their future education and wellbeing. To navigate these complex trust laws and secure the maximum compensation, families in Halifax strongly rely on the expertise of local personal injury lawyers.
Step-by-Step Process in Halifax, Nova Scotia
Securing and protecting a settlement for a minor child requires proving the long-term financial loss and seeking strict judicial approval. 📝 Here is how a law firm will guide you through this process.
Step 1: Calculate the Child’s Financial Losses
Your lawyer will hire financial experts, such as actuaries or economists, to calculate exactly what the child has lost. This includes the “loss of dependency” (the portion of the parent’s future income that would have paid for the child’s food, clothing, and housing until adulthood) as well as the “loss of care, guidance, and companionship,” which acknowledges the irreplaceable role of a parent’s mentorship.
Step 2: Negotiate the Settlement
Once the total financial loss is calculated, your Halifax lawyer will negotiate aggressively with the at-fault party’s insurance company. 💰 Because children have so many years of life ahead of them, these settlements can be substantial. If the insurance company refuses to offer a fair amount that secures the child’s future, your legal team will prepare to take the case to trial at the Supreme Court of Nova Scotia.
Step 3: Supreme Court Approval and Trust Formation
Once a settlement is agreed upon, it is not final until a judge reviews it. Your lawyer will file an application for “Infant Settlement Approval” at the Supreme Court. The judge’s only job is to ensure the amount is fair and in the best interest of the child. Once approved, the money is placed into a secure trust-often managed by the Public Trustee of Nova Scotia or a private trust company-until the child reaches the legal age of majority.
How Much Does it Cost in Halifax?
The legal system is designed to allow families to seek justice without financial barriers, while ensuring professionals are compensated for managing the child’s trust. 💰 Here are the typical costs in CAD:
- Lawyer Fees: Handled on a contingency basis, meaning $0 upfront. The lawyer only takes a percentage of the settlement. For minor children, the Supreme Court judge will strictly review and must approve the lawyer’s fees to ensure they are fair.
- Court Approval Application: Filing the necessary paperwork for the Infant Settlement Approval generally carries court fees of around $200 to $250 CAD, which your lawyer will initially cover.
- Trust Management Fees: If the Public Trustee or a financial institution manages the funds until the child turns 19, they will charge a small annual management fee (usually a percentage of the interest earned) to administer the trust.
How Long Does the Process Take?
Wrongful death claims involving significant future financial calculations take time to resolve properly. 🕖 Gathering the actuarial evidence and negotiating a final settlement usually takes 2 to 4 years.
Once the insurance company agrees to pay, obtaining the mandatory Supreme Court approval takes an additional 2 to 4 months to get a hearing date in Halifax. After approval, the money will sit in the secure trust and grow with interest until the child celebrates their 19th birthday (the age of majority in Nova Scotia), at which point they receive the full payout.
Comparing Settlement Management Options
| Management Option | Who Controls the Money? | Best Used For |
|---|---|---|
| The Public Trustee of NS | A provincial government official | Standard settlements; safe, guaranteed preservation until age 19. |
| Private Formal Trust | A bank or trust company, overseen by a guardian | Very large settlements requiring complex investment strategies. |
| Structured Settlement | A highly secure annuity via an insurance company | Providing guaranteed, tax-free monthly payments over the child’s entire life. |
Frequently Asked Questions (FAQ)
Can the surviving parent use the settlement money for groceries?
Generally, no. The settlement money belongs exclusively to the child and is locked in a trust. It cannot be used for everyday living expenses that a parent is legally expected to provide. However, you can apply to the Public Trustee to release funds for extraordinary needs, like specialized medical care.
What if the child needs the money for university before turning 19?
If the child graduates high school and starts university at age 17 or 18, the parent or guardian can formally request the Public Trustee to release a specific portion of the funds early to pay directly for tuition and textbooks.
What is “loss of care and guidance”?
Under Nova Scotia law, children suffer a recognized financial and emotional loss when they lose a parent’s mentorship, discipline, educational help, and moral guidance. The court assigns a monetary value to this loss to compensate the child.
Does the child have to pay taxes on the settlement when they turn 19?
No. In Canada, compensation received from a personal injury or wrongful death settlement is completely tax-free. When the child receives the lump sum from the trust at age 19, they will not owe the CRA income tax on the principal amount.
Leave a Reply