7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 6, 2021-0896061C6 F - Prolonged Administration of an Estate -- summary under Subsection 104(1)

The will of Mr. X, a resident of Quebec, left all of his property in equal shares, to his two children, aged 10 and 15. His will included an extended administration clause that resulted in an extension of the executor’s duties and authority beyond the normal end of the administration of the estate, until all the legacies were delivered in accordance with the terms of the will (which was directed to occur on the children attaining 25). The will provided that, in the meantime, all income generated on each child’s share was to be used in the executor’s discretion for the support or maintenance of that child, with discretion to encroach on capital in the child’s favour.

Before turning to the potential application of s. 104(18), CRA indicated that if the effect of the clause was to extend the administration of the estate, then it extended the estate qua trust.

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