Acts and Regulations

2015, c.21 - Trustees Act

Section 73
Disposition versions

Full text
Deemed power to appoint
73(1)This section applies in respect of a disposition described in subsection (2) that is made after this section comes into force.
73(2)If the terms of a disposition of property purport to create a trust that does not create an equitable interest in any person and is for a specific non-charitable purpose, the terms of the disposition shall be construed, subject to this section, as constituting a power to appoint the income or the capital, as the case may be, for that purpose for a period not exceeding 21 years.
73(3)Despite subsection (2), the terms of a disposition described in that subsection shall not be construed as constituting a power to appoint if the terms of the disposition provide for an illegal purpose or a purpose contrary to public policy.
73(4)Despite subsection (2), if the disposition is expressed to be of perpetual duration, the court may declare the disposition to be void if the court is of the opinion that, by voiding the disposition, the result would be closer to the intention of the person disposing of the property than the period of validity provided by this section.
73(5)An order under subsection (4) may be made on application by
(a) the person who purported to create a trust,
(b) the purported trustees, or
(c) a person appearing to the court to have sufficient interest in the matter.
73(6)If the income or capital that is subject to a power to appoint under subsection (2) is not fully expended within a period of 21 years, the person who would have been entitled to the property that is subject to the power to appoint, if the power to appoint had terminated at the expiration of the 21-year period, is entitled to that unexpended income or capital.
73(7)If the disposition described in subsection (2) provides for the expenditure of all or a portion of the income or capital within a period that is less than 21 years and that income or capital is not fully expended within that period, the person who would have been entitled to the property that is subject to the power to appoint, if the power to appoint had terminated at the expiration of that period, is entitled to that unexpended income or capital.
73(8)Nothing in this section applies to any discretionary power to transfer a beneficial interest in property to any person as a gift.
Deemed power to appoint
73(1)This section applies in respect of a disposition described in subsection (2) that is made after this section comes into force.
73(2)If the terms of a disposition of property purport to create a trust that does not create an equitable interest in any person and is for a specific non-charitable purpose, the terms of the disposition shall be construed, subject to this section, as constituting a power to appoint the income or the capital, as the case may be, for that purpose for a period not exceeding 21 years.
73(3)Despite subsection (2), the terms of a disposition described in that subsection shall not be construed as constituting a power to appoint if the terms of the disposition provide for an illegal purpose or a purpose contrary to public policy.
73(4)Despite subsection (2), if the disposition is expressed to be of perpetual duration, the court may declare the disposition to be void if the court is of the opinion that, by voiding the disposition, the result would be closer to the intention of the person disposing of the property than the period of validity provided by this section.
73(5)An order under subsection (4) may be made on application by
(a) the person who purported to create a trust,
(b) the purported trustees, or
(c) a person appearing to the court to have sufficient interest in the matter.
73(6)If the income or capital that is subject to a power to appoint under subsection (2) is not fully expended within a period of 21 years, the person who would have been entitled to the property that is subject to the power to appoint, if the power to appoint had terminated at the expiration of the 21-year period, is entitled to that unexpended income or capital.
73(7)If the disposition described in subsection (2) provides for the expenditure of all or a portion of the income or capital within a period that is less than 21 years and that income or capital is not fully expended within that period, the person who would have been entitled to the property that is subject to the power to appoint, if the power to appoint had terminated at the expiration of that period, is entitled to that unexpended income or capital.
73(8)Nothing in this section applies to any discretionary power to transfer a beneficial interest in property to any person as a gift.