Page 54 - Estate Planning Documents

33. Distribution of Net Income and Capital prior to Vesting Date

33.1 Unless the Trustee otherwise determines, “Net Income” of the Beneficiary Controlled
Testamentary Trust shall mean the net income of the trust determined in accordance with
subsection 95(1) of the Tax Acts.
33.2 The Trustee shall determine the Net Income of the Beneficiary Controlled Testamentary Trust

at the end of each Accounting Period and shall in its absolute discretion with respect to any
part or parts of the Net Income:
a) Pay, apply or set aside the whole or any part or parts of the Net Income or any category

of the Net Income to or for the benefit of one or more of the General Beneficiaries
who are living or which are in existence at the time of the determination to the
exclusion of the other or others of them in such shares or proportions as the Trustee
may in its absolute discretion determine; or
b) Accumulate the whole or any part or parts of the Net Income as an accretion to the
capital of the trust as the Trustee may in its absolute discretion determine.
33.3 Where the Trustee role is vacated due to the Trustee becoming a Disqualified Person under
the clause in this Schedule headed “the Trustee”, the party assuming the role of Trustee for
that time shall either:
a) Accumulate the whole or any part or parts of the Net Income as an accretion to the
capital of the trust; or
b) Pay, apply or set aside the whole or any part or parts of the Net Income or any category

of the Net Income to or for the benefit of one or more of the General Beneficiaries
whom the Trustee considers to be in the best interests of the Primary Beneficiary at
that time.
33.4 If the Net Income of the Beneficiary Controlled Testamentary Trust is insufficient to meet the
amounts the subject of a determination by the Trustee in accordance with this clause, then
the deficiency shall be met from the capital of the trust unless otherwise resolved by the
Trustee.

33.5 The Trustee may at any time and from time to time prior to the Vesting Date, pay, set aside or
apply for the benefit of any of the General Beneficiaries, such amount of the capital of the
trust in such manner and subject to such conditions as the Trustee may determine and may
raise any sums for such purpose.

33.6 If, by the later of:
a) The end of the last day of the Accounting Period; or
b) Such earlier or later date as the Trustee may by resolution nominate to be the last day
on which a distribution can be made,

the Trustee has not made a determination under this clause in respect of the whole of the Net
Income for such Accounting Period, then the balance of such Net Income not subject of a
determination by the trustee shall be accumulated.
33.7 Any amount (including any part, parts or category) allocated to any of the General

Beneficiaries will not form part of the capital of the Trust but will be held by the Trustee on

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