Renunciation of Interest (Trust) (ON)

Summary

This precedent is a renunciation by which a beneficiary "renounces" or disclaims their interest under an express trust. This precedent includes practical guidance, drafting notes, and alternate clauses. The legal consequences of a renunciation can be unpredictable. Case law is mixed when applying the principle of acceleration (or not) in circumstances where a life tenant renounces their interest under a trust. As such, trustees and beneficiaries should exercise caution when a beneficiary renounces, and trustees should strongly consider seeking the opinion, advice, or direction of the Court pursuant to s. 60(1) of the Trustee Act, R.S.O. 1990, c. T.23. It is also possible the renunciation may form part of an application to court vary the trust under the Variation of Trusts Act, R.S.O. 1990, c. V.1 ("VATA"). Trustees may be terminating either an inter vivos trust or a testamentary trust. If terminating a testamentary trust, it is useful to refer to the estate under which the trust was ...