The Minors’ Property Regulation, Alta Reg 240/2004 has recently been updated.
Under Section 8(2) of the Minors’ Property Act, SA 2004, c M-18, a person can discharge an obligation to a minor, such as issuing settlement funds, by delivering the funds to a guardian (or the minor if they have the legal duty to support another person) and obtaining an acknowledgement, if the funds are less than the prescribed amount in the regulations. Previously, this prescribed amount was $10,000.00. The Minors’ Property Regulation has updated this amount to $25,000.00.
If you are settling a minor claim, and the amount is under $25,000.00, you can now pay this directly to the guardian (or minor in certain cases). The Public Trustee and the court only need to be involved if the amount is over $25,000.00. However, as has always been the case, if the court does not confirm the settlement through an application, the settlement is not binding on the minor (even if it is under $25,000.00).
When settling a claim with a minor, it is always recommended to consult legal counsel to discuss the best way to proceed.
Should you have any questions with respect to this bulletin, or if you would like more detailed information, please contact the following members of the Brownlee LLP Insurance practice team.