In Manitoba, estate planning is essential for parents who want to protect their children’s future. If something unexpected happens, a proper power of attorney, will, trust and guardianship plan ensures that children’s needs are met if parents become incapacitated, that children are cared for by the right people if parents have passed away and that any inheritances for children are managed responsibly.
Without proper planning, the courts and government agencies may end up making key decisions about your children, their inheritance, and how that money is used.
Why minors cannot directly receive an inheritance
In Manitoba, children cannot legally manage significant property on their own because they lack full contractual capacity. Even if a minor is entitled to inherit, they cannot sign legal documents to manage or sell assets. That responsibility must fall to an adult or institution.
If a child inherits money without a trust established through the will of the deceased, the funds are typically held by the Public Guardian and Trustee (PGT) until the child turns 18. At that point, the entire amount is released to them outright, regardless of maturity, financial literacy, or personal circumstances.
For many families, that outcome may be unsettling. An 18-year-old suddenly receiving a large inheritance may not be prepared to manage it responsibly.
What happens if both parents pass away without a will
This is one of the most difficult scenarios families can face.
If both parents die without wills:
- A guardian must be appointed by the court to care for the children
- The children inherit the estate under intestacy rules
- The Public Guardian and Trustee manages the inheritance
- Funds are held until age 18 with little flexibility
Family members who want to manage the child’s inheritance must apply to the court to become the guardian of the child’s estate. That process takes time, legal fees, and court approval.
In the meantime, important decisions about education, housing, and daily needs may be constrained by strict rules.
Choosing a guardian for your children
A will allows parents to express who they want to raise their children if they die. While the court makes the final decision based on the child’s best interests, a named guardian in a will is a highly persuasive suggestion to the court.
Courts consider factors such as:
- The child’s emotional needs and stability
- Existing relationships with the proposed guardian
- Ability to provide care and support
- Cultural and family connections
- Safety and living arrangements
Even then, circumstances can change. A guardian who was once a suitable candidate may no longer be suitable at the time of the parents’ deaths. That is why it is important for parents to review their wills periodically.s why reviewing your will periodically matters.
How trusts protect minor beneficiaries
A properly drafted trust is often the most important part of estate planning for parents.
Instead of giving assets directly to a child at 18, a trust allows you to:
- Decide who manages the money (the trustee)
- Specify how funds can be used
- Control when distributions are made
- Protect the inheritance from creditors or poor decisions
Some parents choose staggered distributions, such as a release of a portion of the inheritance at ages 21, 25, and 30. Others allow the trustee to exercise discretion to pay amounts for education, medical needs, or a first home when appropriate.
Without a trust, those choices disappear.
Common estate planning mistakes parents make
Several issues frequently arise during estate administration and estate litigation:
- Naming a minor directly as a beneficiary. Registered accounts or life insurance policies that name a child directly can trigger court involvement and PGT management.
- Failing to coordinate beneficiary designations. Your will and registered accounts should work together to flow assets into any trusts for minors through the will. Conflicts between beneficiary designations and estate assets can create delays and legal costs.
- Not planning for future children or grandchildren. Estate plans should anticipate changes in family structure and, at a minimum, capture any inheritance for minor beneficiaries in a simple young beneficiaries’ trust. Not just parents, but also grandparents, aunts, uncles and other family members should all consider the possibility that a minor beneficiary might inherit from their estate, no matter how remote.
- Not adequately planning supports for children with special needs. Specialized trusts may be necessary to protect government benefits and long-term care support.
These problems are avoidable through careful planning with an estate lawyer.
Planning beyond age 18
Turning 18 does not automatically mean a beneficiary is ready to manage significant assets.
Trusts can extend protection into adulthood, addressing risks such as:
- Financial inexperience
- Relationship breakdowns
- Addiction or vulnerability
- Disability or health issues
Some trusts are designed specifically to preserve assets while still supporting the beneficiary’s needs over time.
How estate planning reduces future disputes
Clear instructions reduce the likelihood of estate litigation. Ambiguity often leads to conflict between family members, guardians, trustees, and beneficiaries.
A well-structured estate plan answers difficult questions in advance:
- Who raises children
- Who controls the money
- How funds are used
- When beneficiaries receive assets
When those decisions are documented, families can focus on supporting each other rather than navigating legal uncertainty.
When to update your estate plan
You should review your will and estate plan if:
- You have a child or grandchild
- Your marital status changes
- You acquire significant assets
- A guardian or trustee’s circumstances change
- You move to a different province
Estate planning is not a one-time task. It evolves as your life changes.
Every family situation is different. The right plan depends on your children’s needs, your assets, and your goals.
If you have children in your family or expect to have your family grow in the future, now is the time to plan. Contact Tradition Law LLP to discuss wills, trusts, and guardianship planning tailored to your family.