Executor Power Clause (Lend Whole or Part of Estate to Beneficiaries) (ON)

Summary

This clause is intended for inclusion in a will and authorizes the executor to lend the whole or any part of the estate of the testator to the beneficiaries. This clause includes practical guidance and drafting notes. Since it is impossible to accurately predict the assets that a testator will own at death, or the appropriate way in which they should be liquidated and reinvested, the powers given to trustees in a will should be broad enough to cover as many contingencies as reasonably possible. If there is a likelihood that some of the estate investments will be in the form of loans made with estate assets, specific powers to borrow or make loans must be put into the will. Particularly in the case of a spouse trust, if there is a power to lend estate assets which could lead to non-arm's length loans to capital beneficiaries, the loan power should specify that loans must be made with appropriate interest rates since the ability allowed in the will to make interest free loans to ...