Quick Overview: A child can own property from birth. Money from an inheritance, a gift, earnings, or a contest belongs to the child, not the parents. Parents manage the child’s property as part of their parental responsibility and must act as prudent stewards. They can handle routine matters on their own, but for significant actions—such as selling real estate, renouncing an inheritance, or taking out a loan—they need court approval. Once the child attains full legal capacity, the parents must transfer the managed property to the child and, upon request, provide an account of their management.
How Children Acquire Assets
Children can acquire property in various ways. Most commonly, this includes gifts from parents or grandparents, inheritances, contest winnings, insurance payouts, compensation for damages, or earnings from their own activities.
A child’s assets can take various forms. They need not be limited to money in a bank account. A child may also own an apartment, land, a share in real estate, securities, a stake in a company, copyrights, sports prizes, jewelry, or other valuable items. An important rule is: what belongs to the child does not belong to the parents. Parents may manage the child’s assets, but they cannot use them at will as if they were their own. The Civil Code explicitly includes the management of a child’s assets as part of parental responsibility; parental responsibility begins at the child’s birth and ends as soon as the child attains full legal capacity.
A typical example: An eight-year-old child inherits 300,000 Kč from a grandparent. The money belongs to the child. A parent may manage it—for example, by depositing it in a secure account—but may not use it for their own vacation, to pay off their own debts, or to renovate their own apartment, unless doing so is in accordance with the law and in the child’s best interest.
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Can a child manage their own property?
Until a child attains full legal capacity, they do not have the same legal capacity to act as an adult. However, this does not mean that they are prohibited from doing anything at all. The Civil Code stipulates that a minor who has not attained full legal capacity is capable of performing legal acts commensurate with the intellectual and volitional maturity of minors of their age. Simply put: it depends on the age, maturity, and nature of the specific action.
A young child can buy ice cream or a notebook. An older child can buy a book, clothes, or pay for a regular school field trip. A 16-year-old student can usually manage a portion of the money earned from a part-time job within a reasonable scope. However, the situation would be different if the student wanted to sell valuable jewelry, withdraw a large sum from a savings account, take out a loan, or renounce an inheritance. The law also explicitly states that a minor is never authorized to act independently in matters for which even their legal guardian would need court approval.
Example: A12-year-old child buys a comic book with their allowance. This is a common matter appropriate for their age. However, if the child wanted to transfer 200,000 CZK from an inherited bank account to an investment platform, this would not be a decision the child could make on their own. Such a step would have to be addressed by the parents and, depending on the circumstances, also by the court.
An older minor may also gain greater legal autonomy in connection with business or other gainful activities. If a legal guardian grants consent for the minor to independently operate a business or engage in another similar gainful activity, the court’s approval is required for such consent to be valid.
Who Manages the Child’s Property
As a rule, the child’s property is managed by the parents as part of their parental responsibility. The law uses the term “the child’s estate” in this context. This refers not only to individual items but to the child’s entire estate—money, possessions, rights, and any obligations. Parents have the duty and the right to care for the child’s estate. Above all, they must manage it as prudent stewards. They must safely manage any funds that are not reasonably expected to be needed to cover expenses related to the child’s estate. If the parents breach this obligation, they are jointly and severally liable to the child for any resulting damages.
The administration of a child’s property is generally divided into ordinary and extraordinary administration.
- Day-to-day administration includes routine or customary actions that do not fundamentally alter or jeopardize the child’s property. This may include, for example, paying fees associated with the child’s account, managing small amounts of income, making routine payments, or safely depositing money.
- Extraordinary administration concerns more significant decisions. Typically, these include the sale of the child’s real estate, encumbering the property, renouncing an inheritance, taking out a loan, distributing an estate, or disposing of high-value assets. For these actions, the law requires the court’s consent.
Court approval is always required, for example, when a child acquires, sells, or encumbers real estate; enters into an agreement among heirs regarding the distribution of inheritance shares or the division of an estate; renounces an inheritance; declares that they do not wish to accept a bequest; or enters into a loan or similar agreement.
It is important to note that a legal act performed without court approval is not automatically “void” in all cases. The Civil Code states that if a parent acted on behalf of a child without court approval, the legal act may be declared invalid only if it causes harm to the child.
Real-life example: A parent wants to sell a minor child’s share of an inherited cottage. Even if both parents agreed to the sale, this does not constitute ordinary administration. Therefore, the consent of the guardianship court is required, which will examine whether the sale is truly in the child’s best interest and whether the purchase price corresponds to the value of the property.
When Parents Disagree or There Is a Potential Conflict of Interest
Disagreements between parents regarding a child’s property are not uncommon. They are particularly frequent following a parental separation, in probate proceedings, when managing inherited real estate, or when large sums of money are involved.
Parents are required to represent the child in legal proceedings. The law states that parents represent the child jointly, but either parent may act on the child ’s behalf. If the parents cannot agree on which parent will represent the child in legal proceedings, the court will decide upon a parent’s motion. A parent may not represent the child if there is a potential conflict of interest between the parent and the child or between children of the same parents; in such a case, the court will appoint a guardian for the child.
A conflict of interest may arise, for example, when a parent is also an heir alongside the child, wishes to purchase the child’s share of real property, intends to use the child’s money for family purposes, or when a decision that is advantageous to the parent could be disadvantageous to the child.
In such situations, the court may appoint a guardian for the child. The Civil Code states that the court shall appoint a guardian for the child if there is a risk of a conflict of interest between the child and another person, if the legal representative does not sufficiently protect the child’s interests, or if it is in the child’s best interest for another reason.
In the case of substantial or high-risk assets, the court may also appoint a guardian to manage the child’s estate. This occurs when the child’s interests could be jeopardized, particularly if there are joint property rights between the parents and the child or between the child and their siblings. To the extent of this guardian’s rights and obligations, the parents are restricted in their management of the child’s assets.
In practice, we often see that parents view a child’s savings as “family money.” From a legal standpoint, however, it is necessary to distinguish between the child’s money and the parents’ money. Even a well-intentioned action can become a problem if it is not properly approved or if it results in a conflict of interest.
The Child as an Heir: What to Watch Out For
Inheritance is one of the most common ways for a child to acquire significant assets. These may include money, real estate, a share in a house, land, a car, a business interest, or valuables.A minor must be represented in probate proceedings. Usually, the parents act as the child’s representatives. However, if there is a risk of a conflict of interest—for example, if both the parent and the child are inheriting from the same person—a guardian may be appointed for the child.
Special caution is required when dealing with an inheritance burdened by debt. One cannot simply renounce an inheritance on behalf of a child, enter into an inheritance agreement, or declare that the child does not want the bequest. The law expressly stipulates that such actions require court approval.
Example: Aminor child is set to inherit an apartment, but along with it, a share of the decedent’s debts. The parents believe it would be better to renounce the inheritance. Because this constitutes a significant intervention in the child’s financial status, their decision alone is not sufficient. The matter must be reviewed by a court.
The child is also protected as a forced heir. Forced heirs are the decedent’s children and, if they do not inherit, their descendants. A minor forced heir must receive at least three-quarters of their statutory share of the estate. This is particularly important when the decedent has made a will and omitted the child from it or bequeathed too little to the child. Legal protection is stronger for a minor child than for an adult descendant.
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A Child’s Allowance, Savings, and Debts
Pocket money and small amounts of cash that a child receives are also the child’s property. However, parents may reasonably guide how the child manages these funds. For smaller amounts and everyday purchases, court intervention or special consent is generally not required.
The situation is different when it comes to larger savings, inheritances, or gifts. A child’s money should not be used to cover the parents’ day-to-day expenses. Although the law allows income from a child’s assets to be used first for the child’s support, and under certain circumstances may also be used as a contribution toward the support of parents or a minor sibling living with the child in the family household, but this does not grant parents unrestricted authority to draw on the child’s funds as they see fit. As for the child’s assets themselves, their use for the support of parents or siblings is possible only with court approval and under strict conditions.
Protecting the child from debt is also important. The Civil Code restricts the enforcement of monetary debts arising from legal acts performed by a minor who has not attained full legal capacity. Such a debt may be enforced only against property that the minor acquired before attaining full legal capacity, and against property acquired through legal acts relating to that property. The law also stipulates that a parent who acted on the child’s behalf or gave consent is liable for the child’s monetary debt arising from legal acts performed before the child attained full legal capacity.
This is particularly relevant for contracts, subscriptions, services, leases, online purchases, or other obligations where, in the past, children would sometimes reach adulthood already burdened with debt.
Example:A 15-year-old signs up for a paid online service without fully understanding it. If the legal act was disproportionate to the child’s age and circumstances, the validity of the contract will be examined. If a parent gave consent to the act, that parent may, depending on the circumstances, be held liable.
How Property Is Transferred to a Child Upon Attaining Full Legal Capacity
A parent’s administration of a child’s property does not last forever. Once a child attains full legal capacity, they are to take control of their own property.Most often, full legal capacity is attained upon reaching the age of majority, that is, upon turning 18. Before the age of 18, full legal capacity may be acquired through a court ruling granting legal capacity or by entering into marriage.
Once a child attains full legal capacity, the parents must transfer the assets they have managed to the child. First and foremost, they must hand over the individual components of the assets or, where applicable, transfer management of them, and provide an account of the management of the assets without undue delay, no later than six months. A statement of account is not required if the child does not request it. The transfer of assets does not automatically absolve the parents of liability for their prior administration. The Civil Code stipulates that the transfer and acceptance of assets do not affect the parents’ liability for the administration of the child’s assets. Therefore, if the parents mismanaged the child’s assets, used them for their own benefit, or caused harm to the child, the child, once of legal age, may seek compensation.
Example from legal practice: Ms. Jana was managing the assets of her eight-year-old son, Matyáš, who had inherited a significant sum of money from a grandparent. The money was held in the child’s bank account. The mother wanted to transfer it to a savings account also held in Matyáš’s name so that the funds would grow more effectively and be set aside, for example, for his future education. However, the bank required court approval for such a large transfer. We prepared a motion for approval of the legal transaction and demonstrated that the money would remain the child’s property, would be safely deposited, and that the transfer was in his best interest. The court approved the motion. Similar cases show that even the sensible and safe management of a child’s money may require formal approval when larger sums are involved.
Summary
A child may own property from birth. The child may acquire money, real estate, a share in property, an inheritance, a gift, earnings, or other assets. This property belongs to the child, not the parents.
Parents generally manage the child’s property as part of their parental responsibility. They must act as prudent stewards, manage the money safely, and obtain court approval for major decisions. If the parents disagree or there is a potential conflict of interest, the court may decide the matter or appoint a guardian for the child.
Special caution is required regarding inheritances, large gifts, real estate, loans, inheritance agreements, and the renunciation of an inheritance. Once the child attains full legal capacity, the parents must transfer the managed property to the child and, upon request, provide an account of its management.
Frequently Asked Questions
Can a minor own property?
Yes. A child may own money, real estate, property, rights, an inheritance, and earnings. A child’s property does not belong to the parents, even though the parents usually manage it.
Can a child spend their own money?
Yes, but only to the extent appropriate for their age and maturity. Ordinary purchases made with pocket money are generally not a problem. For larger amounts, investments, the sale of property, or debts, the parents must act, and court approval is sometimes required.
Who manages a child's assets?
Usually the parents. Managing a child’s assets is part of parental responsibility. Parents must act as prudent stewards and manage the child’s money safely.
When do parents need court approval?
For example, when selling or encumbering a child’s property, when heirs reach an agreement on the distribution of an estate, when an inheritance is renounced, when a loan is taken out, or when any other significant disposition of the child’s property takes place.
What if parents use their child's money for themselves?
If, in doing so, they breach their duty to manage the child’s property with due care, they are liable to the child for any resulting damages. In certain cases involving the use of the child’s property, court approval is required.
What if the child is an heir?
A child must be represented in probate proceedings. In the event of a conflict of interest, the court will appoint a guardian for the child. Court approval is required for inheritance agreements, renunciation of an inheritance, or a declaration that the child does not wish to accept a bequest.
Is a minor entitled to a statutory share?
Yes. If a minor is an heir who cannot be disinherited, he or she must receive at least three-quarters of his or her statutory share of the estate.
What happens to a child's property after their 18th birthday?
Once the child attains full legal capacity, the parents must transfer the assets they have managed to the child and, upon request, provide a financial statement no later than six months thereafter. The transfer of assets does not preclude the child from later seeking compensation for damages caused by mismanagement.
