Will (Spendthrift Trust Clause, Payments to Spouse and Issue) (Sample) (ON)

Summary

This precedent is an example of an entire will containing a spendthrift trust cause. The purpose of the spendthrift trust clause is to ensure that the beneficiaries are the ones who will really benefit from the inheritance being given, rather than creditors. If the beneficiary is an undischarged bankrupt, or is about to declare bankruptcy, creditors have a right to claim the beneficiary's interest in an estate, if the interest is vested. Therefore, an outright bequest or a trust where there is a guaranteed entitlement to income and/or capital will benefit only the creditors of the beneficiary. In an effort to keep their assets in the hands of the family only, testators faced with this situation may choose to provide for a fully discretionary trust. In it, the trustees make all determinations as to whether the beneficiary will receive income and capital and how much. Since there is no part of the trust to which the beneficiary is absolutely entitled, there is no part of the trust that ...