Perpetuities Clause (Pay Residue to Beneficiary at End of Perpetuity Period) (ON)

Summary

This perpetuities clause is intended for inclusion in a testamentary trust and directs the trustee to pay out the residue of the testator’s estate to the person for whom the amount is then being held in trust, in accordance with the rule against perpetuities. This clause includes practical guidance and drafting notes. Except in the case of trusts for charitable purposes, trusts cannot continue indefinitely. The Perpetuities Act requires trust assets to vest in beneficiaries within 21 years from the death of the last life in being. This means in will drafting situations there must be closure for trusts created in a will and it most commonly affects drafting of trusts for grandchildren or even great-grandchildren of the testator. For more information on the rule against perpetuities, see the practice note: Testamentary Trusts (ON). For items to consider when drafting a will in Ontario, see the practice note: Will Drafting Considerations (ON). For considerations specific to spouses when ...