All About Estates

Will Drafting Ideas From a Different Perspective

This Blog was written by Holly Allardyce

A Trust Company is the only legal entity that can act as a trustee by holding property in trust for such functions as executors, trustees, and administrators of estates and personal trusts.

Here are a few things an estate administrator from a trust company might like a drafting lawyer to consider:

a. In a trust situation, if a Testator is including a gift over to a person or entity just to prevent an early wind up or intestacy, then consider including an explicit waiver of the even hand in favour of the life tenant.

b. Give trustees the power to make loans. An interest-free mortgage can be a good alternative to an encroachment when a life tenant is asking for funds to purchase a matrimonial home.

c. If there are trusts for minors that will be relatively nominal in value then it not be cost-effective for a trust company to administer such trusts. Consider including a clause allowing the trust company to appoint new trustees and transfer the funds to them. The new trustees will be bound by the same terms and conditions and will have the same powers and authority, with the necessary modifications, as the original trustee.

d. Often a Trust Company will have a standard fee agreement that can be referenced in the Will. If there is a co-trustee then consider whether a separate compensation agreement is desirable or a legacy payment in lieu of compensation, which can be a more tax-effective solution.

e. If a co-trustee is named with a trust company, then consider including a mechanism in the document for that person to resign. Co-trustees can become tired of their duties after a decade or two.

About Paul Fensom
Scotiatrust offers a full range of estate, trust and philanthropic advisory services designed to meet a client’s personal objectives and designed to evolve across a variety of life stages and financial events. Email: