Guardians of property for incapable adults
Ontario's Substitute Decisions Act, 1992 gives two routes to becoming a guardian of property, and both can require security.
| Route | Who decides | Bond rule |
|---|---|---|
| Replacing the PGT as statutory guardian (s. 17) | The Public Guardian and Trustee | The PGT may refuse the appointment unless the applicant provides security, in a manner and amount the PGT sets. The court can dispense with or reduce it. |
| Court-appointed guardian (s. 22 and 25) | The Superior Court of Justice | The order may require the guardian to post security in the manner and amount the court considers appropriate. |
| Non-resident guardian (s. 24(3)) | The Superior Court of Justice | A guardian who does not live in Ontario must provide security for the value of the property, unless the court orders otherwise. |
The bond requirement does not apply when the guardian is the Public Guardian and Trustee or a trust corporation. Every applicant files a management plan, and the bond backs the guardian's duty to follow it.
Guardians of a child's property
Under section 55 of the Children's Law Reform Act, a court that appoints a guardian of a child's property shall require a bond, payable to the child, in the amount the court considers appropriate. A court can skip the bond when it appoints a parent and decides a bond is not needed. Courts usually will not waive it if the applicant's own assets do not exceed the child's funds.
There is another route. Money can be paid into court and held by the Accountant of the Superior Court of Justice until the child turns 18, which avoids a guardianship and the bond. The lawyer will usually weigh both options. When the family needs access to the funds over time, or the asset is not cash, a guardianship with a bond is often the practical answer.
How guardianship differs from an estate bond
An estate bond covers the administration of a deceased person's property. A guardianship bond covers the ongoing management of a living person's property, often for years. That changes the underwriting. The underwriter looks at the guardian's record and finances, the size and type of the property, the management plan, and how long the guardianship is likely to run.
What the underwriter looks at
- The guardian. Credit, personal assets and relationship to the person under guardianship.
- The property. Cash, investments, real estate or a settlement, and how it will be invested under the Trustee Act rules.
- The plan. A realistic management plan with clear spending for the person's care.
- Oversight. Passing of accounts, the Office of the Children's Lawyer for minors, and any conditions in the order.
- Residence. Non-resident guardians face a statutory bond and closer review.
How the bond ends
The bond stays in force for the life of the guardianship. It ends when the court releases it, for example when a child reaches 18 and the guardian passes final accounts, when the adult regains capacity, when a new guardian is substituted, or when the person dies and the estate takes over. Build the release step into the plan from day one.
Working with the lawyer
For estate lawyers and law clerks. Most court bonds arrive through the lawyer acting on the application. If you are the lawyer, send the draft application or the court's direction and the client's broker details, or ask us to work with the client's broker. Approved works through brokers on these files.
