Acts and Regulations

2015, c.21 - Trustees Act

Section 72
Disposition versions

Full text
Imperfect trust provisions – charitable and non-charitable purposes
72(1)A trust that does not create an equitable interest in any person is not void by reason only that its purposes consist of a charitable purpose and a non-charitable purpose.
72(2)The trustees may make an application to the court for an order under this section in relation to a trust described in subsection (1).
72(3)On an application under subsection (2), the court may make one or more of the following orders:
(a) if the court determines that it is practicable to separate the charitable purpose from the non-charitable purpose,
(i) an order that the charitable purpose constitutes a charitable trust, and
(ii) an order that the terms of the disposition of property relating to the non-charitable purpose shall be construed as provided in section 73;
(b) if the court determines that it is not practicable to separate the charitable and non-charitable purposes of the trust, an order that the terms of the disposition of property purporting to create a trust shall be construed as provided in section 73.
72(4)If the court makes an order under paragraph (3)(a), the trustees, subject to any order of the court and to any terms in the trust instrument regarding apportionment of the trust property or the manner in which a power of apportionment may be exercised, shall divide the trust property as the trustees consider reasonable in the circumstances between any new trusts and powers of appointment.
72(5)If subparagraph (3)(a)(ii) or paragraph (3)(b) applies, the court may make orders for the purposes of subsection 73(3) or (4).
72(6)Despite subsection (3), if the purposes of a trust consist of a charitable purpose linked conjunctively or disjunctively with a purpose that is not described specifically but is referred to only by an indefinite qualifying term, such as “charitable”, “benevolent”, “worthy” or “philanthropic”,
(a) the trust takes effect as a charitable trust, and
(b) the trustees shall apply all of the property of the trust as if only the charitable purpose had been set out in the trust instrument.
Imperfect trust provisions – charitable and non-charitable purposes
72(1)A trust that does not create an equitable interest in any person is not void by reason only that its purposes consist of a charitable purpose and a non-charitable purpose.
72(2)The trustees may make an application to the court for an order under this section in relation to a trust described in subsection (1).
72(3)On an application under subsection (2), the court may make one or more of the following orders:
(a) if the court determines that it is practicable to separate the charitable purpose from the non-charitable purpose,
(i) an order that the charitable purpose constitutes a charitable trust, and
(ii) an order that the terms of the disposition of property relating to the non-charitable purpose shall be construed as provided in section 73;
(b) if the court determines that it is not practicable to separate the charitable and non-charitable purposes of the trust, an order that the terms of the disposition of property purporting to create a trust shall be construed as provided in section 73.
72(4)If the court makes an order under paragraph (3)(a), the trustees, subject to any order of the court and to any terms in the trust instrument regarding apportionment of the trust property or the manner in which a power of apportionment may be exercised, shall divide the trust property as the trustees consider reasonable in the circumstances between any new trusts and powers of appointment.
72(5)If subparagraph (3)(a)(ii) or paragraph (3)(b) applies, the court may make orders for the purposes of subsection 73(3) or (4).
72(6)Despite subsection (3), if the purposes of a trust consist of a charitable purpose linked conjunctively or disjunctively with a purpose that is not described specifically but is referred to only by an indefinite qualifying term, such as “charitable”, “benevolent”, “worthy” or “philanthropic”,
(a) the trust takes effect as a charitable trust, and
(b) the trustees shall apply all of the property of the trust as if only the charitable purpose had been set out in the trust instrument.