19: Distribution of trust property on expiry of trust
You could also call this:
"What happens to trust property when the trust ends"
When a trust expires, you must distribute all the trust property.
You do this in accordance with the terms of the trust, or if the terms do not say how, in a way that fits the trust's objectives.
The trust's terms are like a set of instructions that say what to do with the property.
If the terms of the trust do not say how to distribute the property, and you cannot work it out, you look at what the trust is trying to achieve.
You then distribute the property in a way that is consistent with the trust's objectives.
This means you do what the people who set up the trust wanted to happen.
However, if there are still beneficiaries alive and you cannot work out how to distribute the property using the rules in subsection (1), you divide the property equally among all the surviving beneficiaries.
This is what happens when it is not clear what the trust's instructions are.
You give each surviving beneficiary an equal share of the trust property.
"You are an adult at 18 years old in a trust, that's when you're considered grown up."
Part 2Express trusts
19Distribution of trust property on expiry of trust
When a trust expires, all trust property must be distributed—
in accordance with the terms of the trust; or
if the terms of the trust do not expressly provide for the manner in which trust property is to be distributed, in a manner consistent with the objectives of the trust.
However, if there are surviving beneficiaries and it is not possible to determine under subsection (1) the manner in which the trust property should be distributed, the property must be distributed to all surviving beneficiaries in equal shares.
