A Minor Child Inherits: How Far Can a Parent Manage the Money and Sell Property, and When Is Court Permission Needed?

A father or mother has just died, a young child is an heir, and there is land, a bank account or insurance money in the picture. Almost every family then asks the same questions: as a parent, can I use my child's money, can I sell my child's land, and why do the bank and the land office ask for a court order?

This guide looks only at the child-heir angle: how far a parent or guardian may manage the child's property, which acts need the court's permission, and what to do when the guardian is a co-heir with the child. Who the heirs are and how an estate is divided generally is covered in our main inheritance guide. The steps for petitioning for an administrator are in the guide to petitioning for an estate administrator. Child support and custody between separated parents are in the guide to child support and custody.

The short answer

A parent who exercises parental power may manage a minor child's property, and must do so with the care of a prudent person. Ordinary management, such as keeping a deposit account or using the child's money for support and schooling, needs no court visit. But the important acts the law lists, such as selling or mortgaging land or leasing it for more than three years, need the court's permission first. So does any matter in which the parent's own interest (or that of the parent's spouse or child) conflicts with the child's.

The legal rule. Section 1566 of the Civil and Commercial Code places a child who has not reached majority under the parents' parental power. Section 1571 makes managing the child's property part of that power, to be done with the care a prudent person would use. Section 1574 lists 13 kinds of juristic acts concerning a minor's property that the person exercising parental power may not do unless the court permits. Section 1575 provides that if a matter benefits that person, or that person's spouse or child, in a way that conflicts with the minor's interests, the court's permission must be obtained first, otherwise the act is void. Section 1718 bars minors from being estate administrators. Where no parent exercises parental power, the court may appoint a guardian under section 1585, and section 1598/3 applies several parental-power rules to guardians as well.

Our practical view. The problem we meet most is not a parent who sets out to short-change a child. It is convenience: the family agrees on a division among themselves and learns later that it is void, or the child's money gets mixed with household money until nobody can explain where it went. Separating accounts, keeping receipts and applying to the court before any significant transaction avoids most of this. The court decides each case on its reasons and the child's interests, so this guide does not promise the outcome of any petition.

Hypothetical example used throughout. A family in Khon Kaen. Somsak has died, leaving a house with one plot of land and one bank account. His heirs are his wife Malee and their son Phum, aged 9. Malee wants to sell the land to fund a shop and to care for Phum.

1. How far may a parent manage the child's property?

A child who has not reached majority is under the parents' parental power (section 1566), generally until the age of 20, or earlier on a lawful marriage from age 17. Parental power includes managing the child's property (section 1571). In practice:

• What the child inherits belongs to the child, not to the parents. The parent is the manager and representative.
• It must be managed for the child's benefit, with a prudent person's care, not for the convenience of the household as a whole.
• Spending on the child (school fees, medical care, living costs) may reasonably be paid from the child's money, but evidence should be kept.
• Certain significant acts need the court's permission first. See section 2.

If the parents are separated or divorced, who holds parental power follows their agreement or the court's order. See the guide to child support and custody.

2. Which acts need court permission?

Section 1574 lists 13 kinds. The table groups them in plain language, in the order they most often arise with an inheritance. Check the full text in the official version.

In the hypothetical, Malee cannot sell the land that Phum owns (or co-owns) without applying to the court first. Applying does not guarantee permission. The court looks at whether the sale is necessary, whether the price is reasonable, and whether the money will really be used for Phum.

3. Conflict of interest: when the parent benefits from the same matter

Section 1575 applies when an act benefits the person exercising parental power, or that person's spouse or child, in a way that conflicts with the minor's interests. That person must obtain the court's permission first, and without it the act is void. Typical examples:

• A parent buys the child's property, or sells it to himself or herself or to a relative.
• The child's money or land is used as security for the parent's debt.
• An estate is divided with the parent as a co-heir alongside the child, and the parent also signs for the child (see section 8).
• A contract is made with the parent's business using the child's assets.

We would not assume that "a mother and child cannot be in conflict". The law looks at the structure of the interests, not at anyone's good intentions. If you are unsure whether a matter falls within it, take advice before signing, because repairing it afterwards is harder.

4. If no parent exercises parental power: guardians

Section 1585 allows a guardian to be appointed for a minor who has no parents or whose parents have lost parental power. Where a parent has lost power only in part, for example the power to manage property, the court may appoint a guardian for that part only. A guardian is the child's statutory representative, and section 1598/3 applies sections 1570 to 1577 to guardians with the necessary adjustments, except section 1573. For a guardian this means:

• The acts listed in section 1574 still need court permission.
• The conflict-of-interest rule in section 1575 applies in the same way.
• The child's income may be spent as reasonably needed for support, upbringing and education. Any surplus may be invested only as section 1598/4 allows: Thai government or government-guaranteed bonds, a first-priority mortgage or sale with right of redemption over immovable property for an advance not above half its market value, fixed deposits at a bank lawfully operating in Thailand, or another investment the court specifically permits.

Appointing a guardian is a separate court process, which we do not detail here. A family in this position should take advice before dealing with any of the child's property.

5. A minor cannot be an estate administrator: who manages the estate?

Section 1718 bars minors from being estate administrators. If all the heirs are children, a suitable adult, often the surviving parent or a relative, must be appointed through a court petition, as explained in the guide to petitioning for an estate administrator. Keep two roles apart:

• The estate administrator manages the whole estate for all the heirs and has the statutory duty to prepare the estate inventory.
• The person exercising parental power manages what the child has already received, as the child's representative.

One person may hold both roles, but should record which capacity is being used, and take care over section 3 where interests may conflict. A minor named in a will as executor cannot act under section 1718. On choosing an executor in a will, see choosing an executor.

6. What banks and land offices generally do

Each institution has its own procedure, and these change, so this is only the general picture.

• Banks commonly ask for the death certificate, documents showing who the heirs are, the child's papers (birth certificate, house registration), the identity documents of the person exercising parental power, and often the court order appointing an administrator or any order concerning the child. For large balances, or withdrawals that are not for the child's support, some banks require an account in the child's name operated by the person exercising parental power, or ask for more documents. Ask the branch before going.
• Land offices can register an inheritance transfer to a child heir as an inheritance. If the land is then to be sold, mortgaged or otherwise dealt with, the officer will ask for the court's permission under section 1574. For the usual route, documents and the 30-day announcement, see the guide to inherited land transfer at the land office.
• Landlords, insurers and other bodies may ask for proof of the parental authority of the person acting.

It helps to keep several copies of the relevant court order or certificate, and to ask each body first which documents it wants, to avoid repeat visits.

7. Keeping accounts of the child's money

Section 1571 requires management with a prudent person's care. The law does not prescribe one format of account for every parent, but keeping accounts is the best way to show you did your duty if the child, when grown, or another relative asks, or the court wants to see. We suggest:

• Open a separate account in the child's name, and do not mix it with household money.
• Withdraw only what is needed and note the purpose each time.
• Keep receipts for school fees, medical care and the child's other costs.
• Summarise income and spending yearly, and keep the records until the child reaches majority.
• Place any surplus on fixed deposit or in the investments the law allows. Do not lend it to anyone.

A simple account sheet (adapt as needed)

At year end, total the receipts and payments and the balance, then sign and date it.

8. A common case: the surviving parent is a co-heir with the child

In the hypothetical, Malee and Phum are heirs of the same estate. When the time comes to divide it, their interests point in opposite directions: whatever Malee takes more is what Phum takes less. If Malee signs both as an heir and as Phum's representative, section 1575 is engaged. What to do:

1. Do not sign a division agreement, or transfer the child's share, on your own, even if every sibling and relative agrees.
2. Apply to the court for permission first, attaching the draft division agreement and the reasons why it benefits the child.
3. If the child's immovable property is also being sold or mortgaged, state the section 1574 grounds in the same petition.
4. If there is no hurry to divide, leaving the child's share in the child's name until majority is often the lower-risk option, though housing and upkeep costs of the property need thought. On income from undivided estate property, see the guide to rental income from inherited property before partition.

If property has already been divided without permission, do not ignore it. Take advice on the options and on any time limits that may be running.

9. Outline of a petition for court permission

The title and form of the petition differ between courts. Ask the court's clerk's office what type of case it is and which documents must be attached. The outline below is a guide only, not an official form, and a lawyer should check it before filing.

Petition for permission to enter into a juristic act concerning a minor's property
Court: ____ (the court with jurisdiction, as the court directs)
Petitioner: ____ (father / mother / guardian)   Minor: ____

1. The minor: name, age, address; the petitioner's parental power shown by ____
2. The estate: the deceased ____ died on ____.
   The minor received ____ (title deed / account no.), the minor's share ____
3. The act for which permission is sought: ____ (sale / mortgage / division / etc.)
   under the Civil and Commercial Code, section 1574 and/or 1575
4. Reasons and the minor's interests: ____ (necessity, plan for the money,
   valuation / buyer / terms, views of the other heirs)
5. Conflict of interest: ____ (is the petitioner a co-heir; what does the petitioner gain)
6. How the proceeds will be handled: ____ (e.g. fixed deposit in the minor's name; used for ____)
7. The petitioner asks the court to permit the petitioner to do the act above.
Attachments: minor's birth certificate; house registration; death certificate;
property documents; draft contract; consent of other heirs (if any); valuation
Signed ____, Petitioner

10. Checklist for parents and guardians

Before doing anything with the child's property

• Identify which property is the child's and what share the child holds
• Check whether the act is on the section 1574 list
• Check whether you, your spouse or your child gain in a way that conflicts with the child (section 1575)
• If court permission is needed, sign nothing until the court permits

Accounts and documents

• Open a separate account in the child's name
• Keep every receipt and slip for spending the child's money
• Prepare a yearly summary of income and spending
• Keep copies of court orders and estate papers in one file

Institutions and the estate

• Ask the bank and the land office which documents they need before you go
• If an administrator is needed, confirm the nominee is not a minor (section 1718)
• If the child has no parent exercising parental power, take advice on appointing a guardian (section 1585)

Further reading

• Parent has died: how is the estate divided? — who the heirs are and the overall picture of administering an estate
• Petitioning for an estate administrator — documents, the family tree and the hearing
• Child support and custody — parental power when the parents live apart
• Inherited land transfer at the land office — steps and documents when the estate includes land
• Rental income from inherited property before partition — who receives the rent while the estate is undivided
• Estate administrator not distributing or not answering heirs — when the administrator does nothing

A child's inheritance belongs to the child. A parent may manage it as a duty, but selling, mortgaging and any act in which the parent's interest conflicts with the child's need the court's permission first.

We help parents and guardians prepare petitions for court permission, review draft division agreements that involve a child heir, and deal with banks and land offices. For an initial consultation, call +66 92 254 2045 or send us the details. See also our estate practice and family practice.

This guide is published by Suwanvara Law Firm — a Khon Kaen law firm established in 1986. General information only, not legal advice on a specific matter.