Residue Clause (Trust Funds to Children as Needed, Remainder Paid Out When First Child Reaches Majority) (ON)

Summary

This residue clause directs the trustees to hold the residue of the testator's estate for the benefit of their children and to pay the income or capital out of the residue of the estate, in the trustee's discretion, according to the children's needs, until the date when the first child reaches the age of majority. This clause includes practical guidance and drafting notes. Any provision of a will that deals with the assets remaining after payment of debts, taxes, administration expenses, payment of cash legacies and delivery of specific bequests or legacies, represents a gift of some or all of the residue of an estate. In determining the residue of an estate, and therefore the basis for calculating the shares of the beneficiaries, the treatment of loans already made to beneficiaries is important. A loan receivable by the estate is an asset of the estate and affects the size of the shares of the residue as long as it is not statute barred. A demand loan with no stated term may be made ...