MANAGEMENT OF THE PATRIMONY

Transcription

1 GUIDE FOR THE AND THE SHIP COUNCIL FOR A MINOR MANAGEMENT OF THE PATRIMONY SECTION C MANAGEMENT OF THE PATRIMONY

2

3 CONTENTS 1. MANAGEMENT OF THE PATRIMONY Are you obliged to preserve your child s patrimony? What is parental authority? What is the support obligation? When necessary, is it possible to use some of the child s compensation benefits? Is it possible, on an exceptional basis, to draw on the child s patrimony? How do I decide whether an expense can be covered using the minor s patrimony? How do I sell property or borrow a large sum of money? How do I renounce a succession? What are the expenses of a tutorship? Do tutors have to file an income tax return for their children? Can the tutor or tutorship council receive remuneration? SECTION C - MANAGEMENT OF THE PATRIMONY 3

4 In this section, we present basic notions for the sound management of a minor s patrimony. As a rule, this patrimony must be preserved. But there are some exceptions to the rule. We describe them in the following pages. SHIP Look for the and symbols to quickly find the information you COUNCIL need. 1. MANAGEMENT OF THE PATRIMONY Juliette s husband Paul died as a result of a bad car accident. Their son Jeremy inherited the sum of $50,000, in addition to benefits from the Société de l assurance automobile du Québec (SAAQ). After her husband s death, Juliette suffered financial hardship. She wondered if she could use her child s money to cover some of the family s needs. Do you know the answer to Juliette s question? After reading this section, you will. You will know: How to manage the child s patrimony; What assets must be preserved and given to the child when he or she is of age; What expenses can be paid for out of the child s patrimony. You will also learn a few essential notions with respect to the sound management of a minor s property Are you obliged to preserve your child s patrimony? Yes. As tutor, you must preserve your child s patrimony and give it to him or her when he or she comes of age or is emancipated. You can make certain decisions on your own, but for others, you must obtain the authorization of the tutorship council or the court. This is what the Civil Code of Québec terms simple administration. Preservation of the minor s patrimony is the rule; spending it is the exception. 4 SECTION C - MANAGEMENT OF THE PATRIMONY

5 1.2. What is parental authority? Parental authority refers to parents rights and obligations toward their children from the minute they are born until they turn 18. For example, parents have these rights and responsibilities toward their children: Custody; Supervision; Education. They must also: Give the child their attention; Protect them physically and psychologically; Feed them; Care and maintain them; and Ensure their safety and health. Parents have the right to make all decisions necessary to their children s well-being. For example, they decide: Where their children will live; To allow or refuse health care for their children. 1 Parents use their parental authority together, whether they are married, in a civil union, or a common-law relationship. If one parent dies, the other parent exercises his or her parental authority alone. 1 Source : Éducaloi. SECTION C - MANAGEMENT OF THE PATRIMONY 5

6 1.3. What is the support obligation? Parents are responsible for providing food for their children and they are obligated to ensure their maintenance. Together, these two responsibilities make up the support obligation. This means that even if your child has assets, you must still provide for his or her needs, in particular, food, clothing, housing, personal care, recreation, travel, dental care, schooling, etc. Independently of the tutorship, you must continue to cover the family s expenses, and see to the education of your child, and his or her psychological, physical, and material well-being When necessary, is it possible to use some of the child s compensation benefits? Jeremy has been receiving benefits from the SAAQ since his father Paul died in a car accident. One of them is meant to replace Paul s earnings, and it can be used to cover Jeremy s needs. Certain benefits are paid to the child to compensate for the loss of income that usually results from the death of one of the parents. The purpose of these payments is to contribute to the child s maintenance. To cover your child s needs, you can therefore use the lump sum death benefit paid to a dependant other than the spouse by the Société de l assurance automobile du Québec (SAAQ), or the monthly death benefits paid by the Direction de l indemnisation des victimes d actes criminels (IVAC) [victims compensation] and the Commission des normes, de l équité, de la santé et de la sécurité du travail (CNESST) [workers compensation]. Other sums the minor may receive must be preserved, such as an inheritance, life insurance product, compensation for damage sustained, amount resulting from an out of court settlement, etc. Please contact the person who is in charge of the child s file to learn more about the rules for using compensation benefits Is it possible, on an exceptional basis, to draw on the child s patrimony? Under certain exceptional circumstances, tutors may withdraw from their children s patrimony sums that would normally have to be preserved. You can do this after you and the tutorship council have determined that you lack the means to pay for the good or service needed by the child, particularly in relation to his or her health, schooling, or employment integration. Here are some examples: 6 SECTION C - MANAGEMENT OF THE PATRIMONY

7 Health: orthodontic or other dental care, optometry expenses; Employment integration: postsecondary tuition, purchase of work tools, special education fees, transportation costs, etc. The decision you and the tutorship council make jointly must be in the child s interests. The tutorship council will evaluate whether it can authorize the exceptional use of the patrimony by considering the following questions: Is it essential to draw on the patrimony? Is it in the child s interests to make this expenditure? Have other options been considered (bursaries, grants, etc.)? Would the parents income be sufficient to pay for the item or service without having to draw on the child s patrimony? Is the identified need truly necessary?? For help in making this decision, refer to the criteria listed in section 1.6. If you still have questions, consult the person who is in charge of the minor s file at the Curateur public. The "Exceptional Use of the Patrimony of a Minor Child" form is designed to help you demonstrate this need. You will find it in "Tools and Forms," and in digital format on the website of the Curateur public du Québec. Before making an expenditure using money from your child s patrimony, you must fill out this form and have it signed by the tutorship council. You must also attach it to the annual report. Furthermore, if your child is 14 or older, it is suggested that you keep him or her informed of any decisions that concern him or her. The support contribution usually covers all of the child s expenses, with no exception. It is determined based on the parents earnings and the number of their dependent children. SECTION C - MANAGEMENT OF THE PATRIMONY 7

8 1.6. How do I decide whether an expense can be covered using the minor s patrimony? When it has been established that you are unable to fulfill your support obligation, the following criteria can be used to assess the admissibility of covering an expense with the child s patrimony. Always keep in mind that preservation is the rule and spending the patrimony, the exception. 1. First, check whether there are other ways of paying for the good or service your child needs. For example, some governmental allowances to cover specific needs may be useful, for instance, programs to help pay the costs of adapting a vehicle or room for a disabled child. Other expenses are already covered by public services, especially health and education expenses. Hint: On the Curateur public s website, you ll find a list of the government grants and subsidies that could be helpful. 2. The expenditure must be made in the interests of the minor and be personally beneficial to her or him. It must be related to essential needs such as schooling, health care, or his or her employment integration. It should provide your child with long-lasting benefits and contribute to his or her personal development. 3. The expenditure must take your child s financial capacity into account and not put it in jeopardy. 4. The expenditure should be reasonable in relation to the usual cost of the good or service in question. If they must be paid out of the minor s patrimony, the cost of maintaining the item and any related charges must be considered to determine whether the expense is reasonable. 8 SECTION C - MANAGEMENT OF THE PATRIMONY

9 1.7. How do I sell property or borrow a large sum of money? Benjamin inherited a rental building that needs major renovations. His mother, Liliane, wants to take out a $15,000 loan to make building repairs and thereby preserve its value. How must she proceed to obtain this loan? For additional information concerning the purchase or sale of immoveable property, feel free to contact the Curateur public. As a tutor, if you want to sell something that belongs to your child or take out a large loan in the minor s name, you must first obtain the authorization of the tutorship council. If the value of the item or loan exceeds $25,000 you must obtain court authorization, and the court will ask the tutorship council for its opinion. The tutorship council or the court will agree to the expenditure or loan only in cases where it is necessary for the minor s education and maintenance, to pay the minor s debts, to keep an item of the child s property in good condition, or to preserve its value, as in the above example 1.8. How do I renounce a succession? For more information on the renunciation of a succession, contact Revenu Québec. A succession devolved to a minor is automatically accepted unless otherwise indicated. If you wish to renounce the succession because it is insolvent, the tutorship council must first give you its authorization. If it agrees, you can renounce the succession by means of a notarial act or a judicial declaration. The inheritance then becomes an unclaimed succession and you must notify Revenu Québec. It should be kept in mind, however, that a minor cannot be forced to pay the debts of a succession if they are higher than the value of the assets he or she is receiving. SECTION C - MANAGEMENT OF THE PATRIMONY 9

10 1.9. What are the expenses of a tutorship? Certain expenses that are directly related to the administration of the minor s property can be paid out of the minor s patrimony.. Expenses related to the tutorship function You are authorized to pay tutorship expenses out of the minor s patrimony, particularly the following: Fees and costs related to the formation of the tutorship council; Accountant s fees to produce the annual reports, if applicable; Any expenses related to the representation of the minor in the exercise of his or civil rights (lawyer s fee, etc.). Expenses related to the preservation or protection of assets As a general rule, expenses related to the preservation of the minor s property may be paid out of the minor s patrimony. For example, you can use his or her money to pay for: Regular repairs of immoveable property that do not require taking out a loan or selling another asset (if so, you must obtain the authorization of the tutorship council or court); Bank and investment fees; Purchase of property insurance; Income tax, property tax, etc Do tutors have to file an income tax return for their children? Depending on the value of your child s patrimony, you may have to file a tax return. Contact Revenu Québec or the Canada Revenue Agency for information about your obligations in this respect. 10 SECTION C - MANAGEMENT OF THE PATRIMONY

11 1.11. Can the tutor or tutorship council receive remuneration? SHIP COUNCIL The activities of the tutor or member of a tutorship council are usually unremunerated. However, when the management of a minor s patrimony is complicated and it becomes the tutor s main occupation, he or she may receive remuneration that is set by the court, on the recommendation of the tutorship council. The secretary of the tutorship council can also be remunerated, based on an amount determined by the meeting of family and friends and approved by the court. SECTION C - MANAGEMENT OF THE PATRIMONY 11

12 August 2017