When a minor or a person of limited capacity owns property, two questions arise: who manages it? and what are the limits of that authority? The law does not leave this to personal trust; it subjects serious dispositions to strict judicial supervision.
The governing rule: a guardian's or trustee's authority is an authority to manage, not to own. They preserve and grow the property; they do not deal with it as an owner would.
Contents
1) Capacity and Its Stages
The Civil Code and the Personal Status Law govern capacity, which is graded as follows:
- No capacity: a child lacking discernment, and a person of unsound mind — their dispositions are void.
- Limited capacity: a discerning minor, a prodigal, and a person of weak judgement — their dispositions turn on benefit and detriment.
- Full capacity: on reaching majority with sound mental faculties.
The rule on dispositions: those of a person of limited capacity that are purely beneficial are valid; those purely detrimental are void; and those in between are suspended on the guardian's or the court's approval.
2) Guardianship of Property
Who is the guardian?
The father, then those following in the order prescribed by law. The guardianship arises by operation of law, not by court order.
Their duties
- Preserving and managing the property with care.
- Not commingling it with their own.
- Spending what the minor requires.
- Keeping clear accounts.
An important distinction: guardianship of the person (upbringing, education, travel) differs from guardianship of property. They may vest in one person or be separated.
3) Limits of the Guardian's Authority
Serious dispositions are valid only with the competent court's permission, notably:
- Selling or mortgaging real property owned by the minor.
- Gratuitous dispositions such as gifts or waivers.
- Borrowing in the minor's name or lending their money.
- Settling their rights or discontinuing a claim.
- Investing the property in ventures carrying risk.
- Dividing an estate to which they are a party.
Effect of exceeding the limit: a disposition requiring permission and made without it is not effective against the minor, who — or whoever represents them — may seek its annulment.
4) Trustees and Curators
- Testamentary trustee: appointed by the father by will to manage his children's property after him.
- Appointed trustee: appointed by the court where there is no guardian or testamentary trustee.
- Curator: appointed over the property of an interdicted adult or an absent person.
- All are subject to supervision by the competent authority and answerable for default.
Conditions of appointment: full capacity, trustworthiness, capability to manage, and no interest conflicting with that of the person under guardianship.
5) Interdiction and Its Grounds
Interdiction is a judicial measure restricting capacity to protect the person or others. Its grounds are:
- Insanity and mental incapacity: loss or impairment of discernment.
- Prodigality: squandering property contrary to reason.
- Weak judgement: inexperience inviting others to prey on their property.
- Absence: where the person is absent and their property cannot be managed.
An important safeguard: interdiction does not follow from a relative's assertion; it requires a judgment after investigation and medical expertise where needed — because it gravely affects a person's capacity.
6) Supervision and Accounting
- Inventory of the minor's property at the start of guardianship or trusteeship.
- Periodic accounts of income and expenditure.
- Prior permission for serious dispositions.
- Removal of the guardian or trustee where default or mismanagement is established.
- Liability for loss caused to the minor's property.
A right that does not lapse: on reaching majority a minor may call to account whoever managed their property and claim compensation for mismanagement or unauthorised dispositions.
7) Termination and Delivery of Property
- On the minor reaching majority in sound judgement.
- On lifting interdiction by judgment once its ground has ceased.
- On removal of the guardian or trustee, or their death.
- Then submitting final accounts and delivering the property by record.
A frequently overlooked step: delivery by a detailed record signed by both parties. Delivery without a record opens the door to later disputes that are hard to resolve.
8) Practical Guidance
For guardians and trustees
- Keep the minor's property entirely separate from your own.
- Obtain the court's permission before any serious disposition.
- Keep records of every receipt and payment.
- Prepare annual accounts even if not requested.
To protect a minor
- Seek an inventory early on the death of the deceased.
- Monitor any dealing with estate property.
- Object immediately to any sale without permission.
- Keep copies of documents and judgments.
Professional reminder: most disputes here arise on dividing an estate in which a minor has a share. See our guide to wills and inheritance — a division made without permission for the minor is open to annulment.
Need permission to deal with a minor's property, to seek or lift interdiction, or to call a manager to account? Contact Attorney Meshari Obaid Al-Enezi — Yumnaak Law Firm.
