How Do You Wind Up and Terminate a Trust in Ontario?
How and when a trust can end depends first on the terms of the trust document, so it is worth having it reviewed. Whether adult beneficiaries who can all consent may end a trust early depends on those terms, and a lawyer can confirm. Where some people cannot consent, the Superior Court of Justice may approve an arrangement varying or revoking a trust on behalf of minors, incapable persons, unborn persons and people with possible interests under a discretionary power.
The court will not approve a variation for a minor, incapable or unborn person unless it appears to be for that person's benefit. The Office of the Children's Lawyer must be served where a minor or unborn person has an interest, and it does not take instructions from the parents.
A trustee who wants to pass the accounts may file them in the office of the Superior Court of Justice. The notice of application must be served on everyone with an interest at least 60 days before the hearing in Ontario. A beneficiary who objects must file a notice of objection at least 35 days before the hearing. Tax filings may also be due, so an accountant can help.
Key takeaways
- How and when a trust can end depends first on its own terms, so have the trust document reviewed.
- The Superior Court of Justice may approve a variation or revocation on behalf of minors, incapable persons, unborn persons and others who cannot consent.
- The court will not approve a variation for a minor, incapable or unborn person unless it appears to be for that person's benefit.
- A trustee who wants to pass the accounts may file them in the office of the Superior Court of Justice, and everyone with an interest must be served.