Residue Clause (Gift to Children, Avoid Saunders v. Vautier Rule Where There are No Grandchildren) (BC)

Summary

This clause directs the trustee to hold any part of the will-maker's estate which the named beneficiary's child is entitled to and pay as much of the income and capital as the Trustee decides for that child's benefit until they reach the age of 21. Although the rule in Saunders v. Vautier, [1841] EWHC Ch J82 permits the beneficiary to seek wind up of the estate at the age of majority in most cases, the rule is rarely invoked immediately upon reaching the age of majority. This clause includes practical guidance and drafting notes. The rule of equity provides that, if all of the beneficiaries of a trust are of the age of majority and under no disability, the beneficiaries may require the trustee to transfer the legal estate to them and thereby terminate the trust. This rule is based on the very old decision in Saunders v. Vautier (1841) but remains good law in British Columbia and Ontario. It has been abolished in Alberta, Manitoba and Nova Scotia. If the will simply directs that the ...