Informal trusteeship

People who suffer from a mental incapacity may need help managing their finances. The amount of assistance they need depends on their disability, what needs to be managed and who is willing and able to assist them.

If the disabled person doesn't have a lot of assets and only needs help managing a monthly government cheque, trusteeship can be arranged with the government department issuing the cheque. This type of trusteeship is commonly called informal trusteeship and it has several advantages.

There are no Court costs involved and the informal trustee is only accountable to the department that issues the cheque and not the Court. The informal trustee may have to account to the department from time to time for all of the money received and bills paid. The informal trustee's authority ends when the person-in-need dies. All funds held by the informal trustee become part of the deceased person's estate.

Government departments that offer informal trusteeship programs

• Government of Canada:
• Canada Pension Plan
• Old Age Security
• Veterans Affairs Canada
• Government of Alberta:
• Assured Income for the Severely Handicapped (AISH)
• Employment and Immigration (Income Support)
• Alberta Seniors Benefit

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

Government of Canada

The appropriate papers will be mailed to the applicant by phoning 1-800-277-9914. Operators are available to answer any questions you may have. The documents are also available on the website: http://www.servicecanada.gc.ca/eng/audiences/seniors/benefits.shtml.

Informal trustee provisions are available through the Income Securities Programs and Veterans Affairs.

Income Securities Programs

The Income Securities Programs include the following:

• Old Age Security Pension
• Guaranteed Income Supplement
• Spouse’s Allowance
• Allowance for the Survivor
• Canada Pension Plan

Income Security Programs Offices

Veterans Affairs Canada

This department encourages Court appointed trusteeship. However, an individual (usually a family member) can ask to be an informal trustee/administrator.

Veterans Affairs Canada website: http://www.vac-acc.gc.ca/
Call: 1-866-522-2122 toll-free

IMPORTANT NOTE: A veteran is likely to be entitled to benefits from more than one department. This may require separate informal trustee arrangements.

Government of Alberta

Assured Income for the Severely Handicapped (AISH)

An informal trustee can be appointed under the Assured Income for the Severely Handicapped Act, and is referred to as a “financial administrator.” AISH payments may be redirected after a financial administrator is appointed.

AISH website: http://www.seniors.gov.ab.ca/AISH/

Income Support

Income Support payments may be redirected after a financial administrator is appointed to manage the benefit. For more information, contact the recipient’s caseworker at the nearest Employment and Immigration District office. You can also contact the 24-hour Income Support Contact Centre in Edmonton at 780-644-5134, outside Edmonton, call toll-free 1-866-644-5135, or e-mail ISCC@gov.ab.ca.

Alberta Seniors Benefit

An informal trustee can be appointed under the Alberta Seniors Benefit program. For more information, call 1-800-642-3853, or go to www.seniors.gov.ab.ca.