What is a Trustee for?

When a person is incapable of handling their own finances they may need a Trustee. A Trustee is normally a family member appointed by a court order to handle the financial and legal affairs of the adult. The adult in question is normally an adult with a disability or a senior who has lost their mental capacity.

Sometimes a Trustee is not needed. If a disabled adult is receiving AISH, and they do not have many financial assets, a family member can become an Informal Benefits Administrator. This allows them to monitor the incoming funds from AISH into the account of the adult. The Administrator will not have the ability to help with any other financial or legal issues but in some circumstances, this can be sufficient to help with the adult. Information on the Informal Benefits Administration can be found here, https://www.alberta.ca/informal-benefits-administration-program.aspx. 

A Trustee is capable of collecting revenues on behalf of the adult. Including short term or long term disability payments, AISH benefits, pensions, annuities, investment income, and rental income. Any tax returns which need to be filed for the adult can also be completed by the Trustee or an accountant hired by the Trustee. With that income the Trustee can pay the adults bills including utilities, cell phone bill, medical expenses, rent or mortgage payments, and other costs.

When permitted within the court order a Trustee can also handle larger projects such as buying or selling property for the adult. It is a common scenario where an elderly parent is moved into a long-term care facility and their home needs to be sold. This power can be written into the court order and allow the Trustee to list and sell the property on behalf of the adult. Those funds are then used to support the adult and pay for their cost of living.

A Trustee has a fiduciary relationship with the adult. This means they must act in the adult’s best interest and use the money only in support of the adult, unless otherwise permitted. In order to ensure that a Trustee is acting properly, the court will require them to account every few years. This will be covered in next week’s blog post.