Protective Trust Clause (General) (ON)

Summary

This protective trust clause directs the trustee to divide the residue of the testator’s estate into equal shares among the testator’s children alive at the testator’s death, set aside and keep invested the said shares and pay the net income derived therefrom to child until the child attains age when fraction/percentage of the capital shall be transferred to them. This clause includes practical guidance and drafting notes. A gift of an interest in an asset or fund of money during the lifetime of a beneficiary (the life tenant), with a gift over to another beneficiary or beneficiaries (the remainder beneficiary), provides the only means of controlling the ultimate destination of funds by a testator. The testator who is concerned about protecting capital for the use of a spouse during his or her lifetime, so that it can be distributed to children when both spouses are deceased, can only accomplish this goal by the use of a trust during his or her lifetime so that it can be distributed to...