When a person with a mental disability is unable to look after their own financial affairs, it may be necessary for a trustee to be appointed – this is sometimes called a Formal Trusteeship. A trustee can be a person, trust company, or the Public Trustee and is appointed by the Court and “entrusted” with the power to manage someone else’s property, money and income and perform many duties for the person in need.

A person must apply to be appointed trustee. The Court may appoint a trustee for an adult person if the Court is satisfied that the person is unable to make reasonable decisions about their estate and that it would be in the person’s best interest to have a trustee.

The Public Trustee will not apply to the Court to be appointed as a person’s trustee or consent to being appointed unless the Public Trustee is satisfied the person has assets requiring protection and ongoing management and no other person is willing, able and suitable to act as trustee.

Being appointed trustee is no small task and people who take on this commitment should be commended for their willingness to help others in time of need.

Make sure you have at least two photocopies of the Court Order certified by the Clerk of the Court

The Court order is your proof of authority to act on behalf of the dependent adult. Institutions like banks and the Land Titles Office require copies of the Order certified by the Clerk of the Court.

Familiarize yourself with the Order

It will indicate the extent of authority given to you over the dependent adult's finances. It will also show your obligation to pass your accounts and apply for reviews. If the Order doesn’t give a date(s) for this, follow the timeframes set out in the Dependent Adults Act. If you fail to meet these obligations in a timely fashion the Court can hold you in contempt.

Get to know the Dependent Adults Act and its regulations, and the Surrogate Rules

The Dependent Adults Act can be difficult to understand. Here are some points to help you through. If there is a term in the Dependent Adults Act that you do not understand, look in Section 1 of the Act to see if it is defined.

The Act is divided into four parts

Part 1 – guardianship

Part 2 – trusteeship

Division 1 (Sections 30-34) Application for Trusteeship Order
Division 2 (Sections 35-41) Trusteeship Order and Its Effect
Division 3 (Sections 42-46) Duties of Trustee
Division 4 (Sections 47-48) Appointment of the Public Trustee
Division 5 (Sections 49-57) Other Trusteeship Provisions

Part 3 – issues affecting guardians & trustees

Part 4 – the Public Trustee

The remainder of the Dependent Adults Act is not likely to apply to your situation. The Surrogate Rules may also be intimidating, however, Part 4, rules 118 to 136 are the ones that will apply to trustees of dependent adults.

Copies can be found at Court House libraries or the Queen’s Printer.
Or, go to http://www.qp.gov.ab.ca/

The Queen's Printer:
Edmonton
Main Floor, Park Plaza Building
10611 – 98 Avenue
Phone: (780) 427-4952
Fax: (780) 452-0688

Your public library may also have copies of the legislation and Surrogate Rules.

Let people know about your appointment

The Dependent Adults Act requires you to serve a number of parties with the Order appointing you as trustee. These are usually the same people you had to serve when you initially applied for the Order.

You should notify:

• Financial institutions regarding bank accounts, loans, guaranteed investment certificates, safety deposit boxes, etc.
• Government departments providing benefits to the dependent adult
• Assured Income for the Severely Handicapped (AISH)
• Human Resources and Employment (Income Support)
• Old Age Security (OAS), Canada Pension Plan (CPP)
• Veterans Affairs, Alberta Seniors Benefits
• Other parties providing benefits
• Workers' Compensation Board
• Employment Insurance Commission
• Private pension sources
• Private long term disability insurers, etc.
• The institution or other place of residence in which the dependent adult may live
  
• All parties providing medical coverage
• Alberta Health Care
• Alberta Blue Cross
• Private medical insurance
• Municipal taxing authorities
  
• Utility companies including cable television and telephone companies
  
• Canada Revenue Agency

Make Banking Arrangements

KEEP YOUR MONEY SEPARATE FROM THE DEPENDENT ADULT’S MONEY. Open a trust account for the dependent adult where you can direct income to and pay bills from on their behalf. Unless authorized by the Court, any investment made on behalf of the dependent adult must be in accordance with the Dependent Adults Act and the Trustee Act.

Arrange for bookkeeping

You are required to account for your handling of the dependent adult's estate. You will have to provide documentation confirming ownership by the estate of the assets described in the accounts. Professional bookkeepers and accountants can be hired and will be paid for by the estate of the dependent adult.

The following must be presented (during the accounting period) to the Court:

• Inventory of property and debts (at the beginning and end of the accounting period)
• Statement of property and money received showing whether it’s capital or income
• Statement of property distributed and money paid out showing whether it’s capital or income
• Indication of changes to property and all debts of the estate paid or incurred
• Statement of expenses incurred or paid
• Statement of anticipated receipts and payments in the case of a final passing of accounts
• Reconciliation (when necessary) showing the items needed to balance the opening and closing net value of the estate
• Proposed compensation schedule for trusteeship showing the basis on which it is calculated
  

Make preparations so you can be compensated

If authorized by the Court, you will be compensated for acting as trustee. Keep a running record of tasks performed and time spent along with any out-of-pocket expenses paid on behalf of the dependent adult while administering an estate.

Keep receipts and cancelled cheques

You may be required to produce receipts and cancelled cheques to pass accounts. It’s in your best interest if you keep them organized.

Know your limitations

You cannot do any of the following without permission from the Court:

• Make gifts, advances, or charitable contributions from the estate
• Take compensation for acting as trustee
• Purchase property from the dependent adult
• Make loans to yourself or others not in accordance with the Trustee Act

How to deal with the death of a dependent adult

When a dependent adult dies, a trustee is required to account to the personal representative of the deceased's estate. You are only required to account to the Court if the personal representative makes application to have you pass your accounts. Be sure to notify the Public Trustee and/or the Public Guardian (if the dependent adult also had a guardian) and the Clerk of the Court in writing of the date of death of the dependent adult.

Options for assistance

Formal Trusteeship is just one option to help dependent adults deal with their finances. Other options include Informal Trusteeship and Enduring Powers of Attorney. Each has its advantages and disadvantages.