I would like to leave my grandchildren, aged two and four, money from my estate. But more importantly, I would like to leave my home to my grandchildren, valued at over $1 million. What is the best way to do that?
—Suniel
Can a minor own real estate?—and more estate questions
Thanks for writing in, Suniel. Leaving an inheritance to grandchildren who are minors is a generous way to support their futures, but it requires careful planning. Below I explain what it means to name a minor as a beneficiary, who will manage or protect the asset until the child reaches adulthood, and practical options for transferring a home or other property through a will or other estate planning tools.
Technically speaking, what is a minor?
The legal definition of a minor depends on the province: in most Canadian provinces the age of majority is 18 or 19. While a person is under the age of majority they generally cannot enter binding contracts, and a parent or legal guardian typically acts on their behalf for many legal and financial matters.
When a minor is named as a beneficiary in a will, or would inherit under provincial succession laws where there is no will, the executor administering the estate has additional responsibilities. In some provinces—Ontario being a common example—the executor must notify the minor’s parent or guardian and may also be required to notify an independent public office that protects children’s legal interests. Where applicable, a designated lawyer or public office will review how the child’s inheritance is handled to ensure the child’s rights are protected.
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Minors as beneficiaries
Because minors cannot legally manage or receive certain types of property in their own name, courts or child-protection legal offices commonly require that inherited assets be held “in trust” for the child. That means someone—an executor, a trustee or a court-appointed representative—holds or manages the asset on behalf of the child until the age of majority or another age specified by the will.
Holding assets “in trust” is similar to keeping a deposit designated for the child: the asset is identified as part of the deceased person’s estate but is earmarked for the minor. For example, a bank account might be titled “Estate of [Deceased], in trust for [Child].” The same approach can be used for cash, investment accounts and real property while it remains part of the estate.
How to gift property to a child
When including your home in an estate plan for minor beneficiaries, there are several common approaches. One option is a testamentary trust created by your will: the property remains part of the estate and is held by a trustee for the child until they reach the set age. Another is to transfer the property during your lifetime, though lifetime transfers raise different tax, legal and practical issues and should be considered with professional advice.
Leaving a house to minors raises practical questions the will should address clearly. Discuss these topics with an estate lawyer and your chosen trustee:
- How will ongoing expenses for the property be paid (property taxes, utilities, upkeep)?
- Will you allocate funds specifically to cover maintenance and insurance?
- Might the house need to be sold to meet other estate obligations or to divide the estate fairly among beneficiaries?
- If the property carries an outstanding mortgage, who will be responsible for the mortgage payments and how will the loan be handled?
- If more than one beneficiary will share ownership, how will disagreements be resolved if one beneficiary does not want the property?
- Are you leaving the house for sentimental reasons, to provide long-term housing, or to create an investment for the children?
- Would the children be better served by a cash gift or investments rather than direct ownership of real estate?
Answers to these questions will shape the structure of the gift. For instance, a will can name a trusted adult or professional as trustee with explicit powers to manage, rent or sell the property and to use estate funds for maintenance and taxes. Alternatively, the will can create a schedule of payments or a separate cash reserve to cover home-related costs so the trustee is not forced to sell prematurely.
Where provincial systems involve a public office or children’s lawyer to protect minor beneficiaries, that office often reviews proposed transactions affecting the child’s inheritance. That review is another reason to have clear, professionally prepared estate documents and to involve your chosen executor and trustee in planning discussions while you can.
Ultimately, leaving real estate to grandchildren is feasible but requires clear legal instructions and careful choice of an executor and trustee who will act in the children’s best interests. Many people choose a combination of a testamentary trust for the property and a cash legacy to cover ongoing costs, while naming a dependable guardian or trustee to handle decisions until the beneficiaries are mature enough to receive the property themselves.
Debbie Stanley is the CEO and Senior Estate Administrator at ETP Canada, a boutique firm in Guelph, Ont., specializing in estate administration. ETP Canada helps executors with estate accounting and professional executor services and has developed resources to help Canadian executors learn the role.
Read more on estate planning:
- Is the family responsible to pay the mortgage for a loved one who has passed away?
- What are the fees for becoming a joint tenant on a parent’s property?
- What are the taxes on transferring real estate to your kids?
- Capital gains, taxes and more: the implications of inheriting real estate