What is it?
The power of parents to manage their minor child's assets is known in law as the "legal administration of the minor's assets".
Legal administration allows parents to administer the property of their minor children and to benefit from the income from that property. It is an attribute of parental authority.
How does it work?
There are two types of legal administration under Monegasque law:
- "Pure and simple administration" when both parents exercise parental authority jointly.
- "Administration under judicial supervision" in the event of the death of one of the parents or if one of them is deprived of parental authority.
The legal administrator represents the minor in all acts of civil life, with the exception of certain everyday acts that the minor may perform alone.
What types of acts?
There are three categories of act, corresponding to an increasing order of seriousness in relation to the economic outcome of the operation: the more the act involves assets, the more formalities are required, and the more authorisation is needed from the Guardianship Judge:
- Conservatory deed: deed by which assets are maintained in good condition (e.g. registration of a mortgage guaranteeing a debt);
- Administrative act: an act relating to the operation or day-to-day management of the property (e.g. entering into a residential lease);
- Disposal: an act that changes the composition of the estate (e.g. sale of a property).
What happens in the event of a dispute?
Where the interests of the legal administrator conflict with those of the minor, the judge will appoint an ad hoc administrator to represent the minor's interests.
By way of illustration, an ad hoc administrator may be appointed in property and parentage matters.
Assets excluded from legal administration
Monegasque law allows assets to be given or bequeathed to a minor on the express condition that it is not subject to legal administration and that it is administered by a third party.
The role of this third party is to administer the child's assets in accordance with the terms of the gift or will. They may therefore be given wider powers than the legal administrators.
This tool can be useful if a parent is wary of his or her ex-spouse managing the joint child's property.
Legal directors' liability
Administrators must take prudent, diligent and informed care in managing the assets of their minor child, in the sole interest of the child. Negligence in the management of the minor's property could render them liable and lead to the opening of a tutelage if the Judge considers that a "serious cause" justifies the opening of such a protective measure.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.