Child’s property management is one of the most frequently asked questions. This article we’re going to give you basic information about this matter. It is good for a parent to understand this matter of law when they’re thinking about giving property to their child.

Minor and Parental Power

First, the minor means a person who is under twenty years of age. However, if the minor legally marries he/she becomes Sui Juris and a minor is subject to parental power as long as he is not Sui Juris, the parental power is exercised by the father and/or the mother or a person who granted the custody by an order of the court according to Section 19, 20 and 1566 of the Civil and Commercial Code (CCC).

Rules and Exceptions

Basically, for the doing of a juristic act, a minor obtains the consent of his legal representative (a person who exercised a parental power), if not such acts are voidable. However, a minor can do all acts which acquire a right or is freed from a duty or a strictly personal or suitable to his condition in life Section 21 to 24 of the CCC.

Even if the parental power includes the management of the child’s property, it doesn’t mean the legal representative of the minor can do whatever he wants, such management shall be exercised with the same care as that of a person of ordinary prudence. Also, some businesses listed belows cannot enter into, except with permission of the Court, Section 1571 and 1574 of CCC;

  1. selling, exchanging, sale with right of redemption, letting out property on hire-purchase, mortgaging, releasing mortgage to mortgagor or transferring the right of mortgage on immovable property or on mortgageable movable property;
  2. extinguishing the whole or a part of real right of the minor on immovable property;
  3. creating servitude, right of inhabitation, right of superficies, usufruct or any charge on immovable property;
  4. disposing of the whole or a part of the claim the purpose of which is to create real right on immovable property or on mortgageable property, or the claim the purpose of which is to have a real right on such property of the minor relieved;
  5. letting immovable property for more than three years;
  6. creating any commitments the purpose of which is to achieve the objective as provided in (1), (2) and (3);
  7. making a loan of money;
  8. making a gift, except out of the income of the minor on the minor’s behalf for charitable, social or moral purposes, and suitable to the minor’s condition in life;
  9. accepting a gift subject to any condition or charge, or refusing a gift;
  10. giving guarantee by any means whatsoever which may cause the minor to be compelled to perform an obligation or to enter into other juristic act, as requiring the minor to perform an obligation to other person or on behalf of other person;
  11. making benefit out of the property other than those provided in Section 1598/4 (1), (2) or (3)
  12. making a compromise;
  13. submitting a dispute to arbitration.

In addition, Section 1575 and Section 1576 of CCC, if the interests of a person exercising parental power or the interests of a spouse or children of a person exercising parental power conflict with those of the minor, the former must obtain the permission of the court in order to perform such act, failing such act shall be void.

The interests of a person exercising parental power or the interests of a spouse or children of a person exercising parental power shall include interest in the following businesses:

  1. Interests in the business that the said person performs with an ordinary partnership of which that person is a partner.
  2. Interests in the business that the said person performs with a limited partnership of which that person is a partner with unlimited liability.

Conclusion

Understanding this basic information about management of child’s property helps you to decide about giving a property to your child. If you are in need of a family lawyer, or for more information, we can help, just feel free to contact us at any time.