This week on Hull on Estates and Succession Planning, Ian and Suzana conduct a quick lesson on capital encroachment and discuss the role of investment accounts in the passing of accounts.

Comments? Send us an email at hullandhull@gmail.com, call us on the comment line at 206-457-1985, or leave us a comment on the Hull on Estate and Succession Planning blog.

(1) THE RULE IN BROWNE v. MOODY, [1936] A.C. 635 (P.C). – Direction to pay after a life interest – vesting of interest.

(2) THE CLAUSE – “Income from a trust to a son for life, and on son’s death, the fund to be divided among the daughters and granddaughter of the testatrix in equal shares, with gift over in the event that any of the daughters and the granddaughter predecease the testatrix or the son leaving issue, such issue to take the interest to which the person so dying would have been entitled had she survived the testatrix.”

(3) THE FACTS - The testatrix left a son, three daughters and one granddaughter.

(4) THE QUESTION - What interest do the beneficiaries take and when does the interest arise?

(i) On the death of the testatrix?

(ii) At the date of the Will? or

(iii) At some other time?

(5) WHERE TO START RESEARCH -

(i) Theobald on Wills - page 602 - paragraphs 43 - 26.

(ii) Feeney’s Canadian Law of Wills - paragraphs 17.8 - 17.47.

(iii) Sheard, Hull and Fitzpatrick, Canadian Forms of Wills, page 221.

…

Although Will provisions can be quite unique, assistance often can be sought from similar provisions in other documents. A review of the case law can therefore be of assistance as well.

We’ll deal with another such provision tomorrow.

All the best – Suzana.