Article 18 of the Saudi Minors' Property Guardianship Law
المادة 18 من نظام الولاية على أموال القاصرين
The article allows the Authority to manage funds shared between those covered by the Law and others, with the partners' consent or by court decision, for a percentage of no less than 5% of the net return on the others' share, and allows management to be handed to the covered person's relatives.
Official text (Arabic)
This article has not been amended since the law was issued.
تتولى الهيئة إدارة الأموال المشتركة بين المشمولين بهذا النظام وغيرهم بناء على موافقة الشركاء على الشيوع من غير المشمولين بهذا النظام أو بناء على قرار من المحكمة المختصة وتتقاضى في هذه الحالة نسبة لا تقل عن (5 %). من صافي عائد حصة غير المشمولين بهذا النظام.
ويجوز للهيئة أن تطلب من المحكمة المختصة أن تعهد بإدارة نصيب المشمول بهذا النظام إلى أقربائه أو الشركاء في الملك من غير المشمولين بهذا النظام على أن يلتزموا بتقديم حساب دوري إلى الهيئة عن هذه الأموال وما يطرأ عليها من ربح أو خسارة.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 18 explained in plain English
This article deals with a common situation in estates: the property is jointly owned by a minor or someone treated like a minor and by adult heirs or partners.
First: the Authority's management of the jointly owned property
- The Authority undertakes the management of the jointly owned property in one of two cases: the consent to co-ownership of the partners who are not covered by the Law, or a decision of the competent court.
- In this case the Authority receives a percentage of no less than 5% of the net return on the share of those not covered by the Law. The percentage is taken from the return on the adult partners' share, not from the minor's share.
Second: entrusting management to relatives or partners
- The Authority may ask the competent court to entrust the management of the covered person's share to his relatives or to the co-owners who are not covered by the Law.
- Provided that they undertake to submit a periodic account to the Authority of these funds and any profit or loss arising on them.
The second option lets the family manage the property itself under the Authority's oversight, and this is done by the court's decision on the Authority's request.
It is preceded by Article 17, with its list of dealings that the Authority's administration carries out only with the Board of Directors' approval, including partition and buy-out in liquidation proceedings on delegation from the heirs or partners or by court ruling.
If you are a partner in an estate that includes a minor and want to know the suitable option, you can consult a lawyer who specializes in personal status and estates.
Practical example
A father left four sons, two adults and two minors, along with a building in Dammam. The two adult sons agreed that the Authority would manage the whole building, so the Authority receives a percentage of no less than 5% of the net return on their share. Alternatively, the Authority can ask the court to entrust the management of the minors' share to their adult brother, provided he submits a periodic account to the Authority.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 18 of the Saudi Minors' Property Guardianship Law
Does the Guardianship Authority manage an inheritance shared with adults?
Yes, with the consent of the partners who are not covered by the Law or by a decision of the competent court.
How much does the Authority take for managing jointly owned property?
A percentage of no less than 5% of the net return on the share of those not covered by the Law.
Can a minor's relatives manage his share instead of the Authority?
The Authority may ask the court to entrust management of his share to his relatives or the co-owners, provided they submit a periodic account to the Authority.
More articles on Investing Minors' Property
- Article 7
The article requires the board of directors to form four permanent committees from among its members: the Sharia, Investment, Endowment Projects, and Audit Committees, and specifies each one's competence.
يكوّن المجلس من بين أعضائه اللجان الدائمة الآتية التي تمارس الاختصاصات المبينة أمامها : اللجنة الشرعية : لإبداء الرأي الشرعي في أعمال الهيئة. لجنة الاستثمار : ل
- Article 14
The article provides that all of the Authority's investments and financial dealings are in accordance with the provisions of Islamic Sharia.
تكون جميع استثمارات الهيئة وتصرفاتها المالية وفقا لأحكام الشريعة الإسلامية.
- Article 15
The article allows the Authority, after the Board of Directors' permission, to invest a percentage of the funds it manages in its own name and distribute the return to those covered by the Law, leaving the controls to the Implementing Regulations.
للهيئة بعد إذن مجلس الإدارة أن تقوم باستثمار نسبة من الأموال التي تديرها باسمها يوزع عائدها على المشمولين بهذا النظام. وتحدد اللائحة التنفيذية الضوابط اللازمة ل
- Article 16
The article lists the components of the Authority's funds: the funds of those covered by the Law and what passes to it, the income of its activities, the State's contributions, and the aid, gifts and donations the Board of Directors accepts.
تتكون أموال الهيئة من: 1 - جميع أموال المشمولين بهذا النظام المنقولة وغير المنقولة والأموال التي تؤول إليها من أي جهة أخرى. 2 - الدخل الذي تحققه من ممارسة نشاطا
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.