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Difference between revisions of "Making and Executing a Will (16:III)"
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Making and Executing a Will (16:III) (view source)
Revision as of 22:34, 9 August 2021
, 22:34, 9 August 2021→b) Gifts to Children
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==== b) Gifts to Children ==== | ==== b) Gifts to Children ==== | ||
As a general rule, anyone named in a will can inherit under that will. However, minors cannot sign a valid receipt for their share in an estate. In practical terms, this means that minors must wait until they reach the age of majority to inherit under a will. The parent, guardian, or other trustee for the benefit of the child would hold title to any property until the child reaches age 19. When property is held by a trustee in trust for a child under the age of 19, the trustee is deemed to have the power to encroach and may, at their discretion, apply all or part of the income to which the child may be entitled towards the maintenance and/or education of the child ( | As a general rule, anyone named in a will can inherit under that will. However, minors cannot sign a valid receipt for their share in an estate. In practical terms, this means that minors must wait until they reach the age of majority to inherit under a will. The parent, guardian, or other trustee for the benefit of the child would hold title to any property until the child reaches age 19. When property is held by a trustee in trust for a child under the age of 19, the trustee is deemed to have the power to encroach and may, at their discretion, apply all or part of the income to which the child may be entitled towards the maintenance and/or education of the child (''Trustee Act'', RSBC 1996, c 464, s 24). | ||
The clause creating the trust should: | The clause creating the trust should: | ||
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* Give the Trustee discretion to invest outside the ''Trustee Act'', only if they are acquainted with business matters. | * Give the Trustee discretion to invest outside the ''Trustee Act'', only if they are acquainted with business matters. | ||
* SAMPLE: “If | * '''SAMPLE:''' “If any person who becomes entitled to any part of my estate is under the age of majority, and I have not specified terms in this Will on which my Trustee is to hold that part, I direct my Trustee to hold that part, and: | ||
# (a) | # (a) pay or use so much of the income and capital of that person’s part of my estate as my Trustee decides for that person’s benefit until that person reaches 19; | ||
# (b) | # (b) add any income not paid or used in any year to the capital of that person’s part of my estate; | ||
# ( | # (c) give that person what remains of that person’s part of my estate when that person reaches 19, but if that person dies before reaching 19, give what remains of that person’s part of my estate to that person’s estate; and | ||
# (d) at any time my Trustee decides, my Trustee may give some or all of that part of my estate to that person’s parent or guardian as trustee [, other than [name of person to exclude, if any,]] to receive and hold that part of my estate for that person’s benefit on the same terms as set out in paragraphs (a), (b) and (c) above. When the parent or guardian receives that part of my estate, my Trustee is discharged in connection with that part of my estate and need not inquire about how it is used.” | |||
(See 2020 CLEBC ''Wills and Personal Planning Precedents'', 20.4.) | |||
'''The intended beneficiaries (i.e. the children) need not be alive at the time of execution to be included if a general term such as “children” is used.''' | '''The intended beneficiaries (i.e. the children) need not be alive at the time of execution to be included if a general term such as “children” is used.''' | ||
