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“Point in Time” Act and Supplement Content

TRUSTEE ACT

[RSBC 1996] CHAPTER 464

NOTE: Links below go to act  and supplement content as it was prior to the changes made on the effective date. (PIT covers changes made from September 6, 2000 to present)
SECTIONEFFECTIVE DATE
9March 31, 2014
10March 31, 2014
14September 1, 2016
 September 1, 2016
 November 2, 2017
15February 28, 2003
15.1 to 15.6February 28, 2003
15.1May 18, 2006
15.5May 18, 2006
16February 28, 2003
17February 28, 2003
17.1February 28, 2003
18February 28, 2003
20February 28, 2003
27March 31, 2014
29December 1, 2007
38March 31, 2014
74March 31, 2014
86March 31, 2014
87March 10, 2016
88March 31, 2014
90May 29, 2003
95March 10, 2016
97March 31, 2014
99March 31, 2014
SupplementMay 18, 2006

  Section 9 (1) (part) BEFORE amended by 2009-13-257(b), effective March 31, 2014 (BC Reg 148/2013).

to the testator's or intestate's estate or to the trust.

  Section 10 BEFORE repealed by 2009-13-258, effective March 31, 2014 (BC Reg 148/2013).

Abolition of rule in Allhusen v. Whittel

10   (1) Unless the will contains an express direction to the contrary,

(a) the personal representative of a deceased person, in paying the debts, funeral and testamentary expenses, estate, legacy, succession and inheritance taxes or duties, legacies or other similar disbursements, must not apply and must not be considered to have applied income of the estate in or toward the payment of any part of the capital of those disbursements or of any part of any interest due or accruing due on them at the date of death of the person, and

(b) until the payment of the debts, funeral and testamentary expenses, estate, legacy, succession and inheritance taxes or duties, legacies or other similar disbursements referred to in paragraph (a), the income from the property required for their payment, with the exception of any part of that income applied in the payment of any interest accruing due on them after the date of death of the deceased, must be treated and applied as income of the residuary estate,

provided that, in any case where the assets of the estate are not sufficient to pay those disbursements in full, the income must be applied in making up the deficiency.

(2) Subsection (1) is deemed always to have been part of the law of British Columbia.

(3) Despite subsections (1) and (2), in any case in which the personal representative has, before April 1, 1966, applied a rule of law or of administration different from subsection (1), the application is valid and effective.

  Section 14 (6) BEFORE amended by 2016-4-29, effective September 1, 2016 (BC Reg 191/2016).

(6) An affidavit by the donee of a power of attorney, under which the execution of a trust is delegated, that the donor is engaged on war service within the meaning of this Act and is out of British Columbia, and that in any transaction the donee is acting in execution of the trust, must be accepted as conclusive evidence of those facts by the court and all other persons dealing with the donee.

  Section 14 (12) and (13) were added by 2016-4-29, effective September 1, 2016 (BC Reg 191/2016).

  Section 14 (5) BEFORE amended by 2017-10-60,Sch 1, effective November 2, 2017 (Royal Assent).

(5) All jurisdiction and powers of any court apply to the donee of a power of attorney given under this Act in so far as respects the execution of the trust in the same manner as if the donee were a trustee of the trust.

  Section 15 BEFORE repealed by 2002-33-23, effective February 28, 2003 (BC Reg 34/2003).

 Trustee authorized investments

15  A trustee may invest trust money in his or her hands, if the investment is in all other respects reasonable and proper, in

(a) securities of Canada, a province, the United Kingdom, the United States of America or a municipal corporation in a province,

(b) securities the payment of the principal and interest of which is guaranteed by Canada, a province, the United Kingdom, the United States of America or a municipal corporation in a province,

(c) securities issued for school, hospital, irrigation, drainage or other similar purposes that are secured by or payable out of rates or taxes levied under the law of a province on property in that province,

(d) bonds, debentures or other evidence of indebtedness of a corporation that are secured by the assignment to a trustee of payments that Canada or a province has agreed to make, if those payments are sufficient to meet the interest on all the bonds, debentures or other evidence of indebtedness outstanding as it falls due and also to meet the principal amount of all the bonds, debentures or other evidence of indebtedness on maturity,

(e) bonds, debentures or other evidence of indebtedness of a corporation incorporated under the laws of Canada or a province that are fully secured by a mortgage, charge or hypothec to a trustee on any one or combination of the following assets:

(i)  land;

(ii)  the plant or equipment of a corporation that is used in the transaction of its business;

(iii)  bonds, debentures or other evidence of indebtedness or shares of a class or classes authorized by this section,

(f) bonds, debentures or other evidence of indebtedness of a corporation incorporated under the laws of Canada or a province if the corporation has earned and paid a dividend,

(i)  in each of the 5 years immediately preceding the date of investment, at least equal to the specified annual rate on all of its preferred shares, or

(ii)  in each year of a period of 5 years ending less than one year before the date of investment, on its common shares of at least 4% of the average value at which the shares were carried in the capital stock account of the corporation during the year in which the dividend was paid,

(g) guaranteed trust or investment certificates of

(i)  a bank, or

(ii)  a corporation that is incorporated under the laws of Canada or of a province and that has a business authorization to carry on trust business or deposit business,

(h) bonds, debentures or other evidence of indebtedness of a loan corporation or similar corporation

(i)  that at the time of investment has all of the following:

(A)  power to lend money on mortgages, charges or hypothecs of real estate;

(B)  a paid up nonreturnable capital stock of not less than $500 000;

(C)  a reserve fund amounting to not less than 25% of its paid up capital, and

(ii)  the stock of which has a market value that is not less than 7% in excess of its par value,

(i) preferred shares of a corporation incorporated under the laws of Canada or of a province if the corporation has paid a dividend,

(i)  in each of the 5 years immediately preceding the date of investment, at least equal to the specified annual rate on all of its preferred shares, or

(ii)  in each year of a period of 5 years ending less than one year before the date of investment, on its common shares of at least 4% of the average value at which the shares were carried in the capital stock account of the corporation during the year in which the dividend was paid,

(j) first mortgages, charges or hypothecs on land in Canada, but only if the loan does not exceed 75% of the value of the property at the time of the loan as established by a valuator whom the trustee believes on reasonable grounds to be competent and independent,

(k) securities issued or guaranteed by the International Bank for Reconstruction and Development established by the Agreement for an International Bank for Reconstruction and Development, approved by the Bretton Woods and Related Agreements Act (Canada), but only if the bonds, debentures or other securities are payable in the currency of Canada, the United Kingdom, a member of the British Commonwealth or the United States of America,

(l) fully paid common shares of a corporation incorporated under the laws of Canada or of a province that, in each year of a period of 7 years ending less than one year before the date of investment, has paid a dividend on its common shares of at least 4% of the average value at which the shares were carried in the capital stock account of the corporation during the year in which the dividend was paid, and

(m) deposits in, or non-equity or membership shares or other evidence of indebtedness of, a credit union.

  Sections 15.1 to 15.6 were enacted by 2002-33-23, effective February 28, 2003 (BC Reg 34/2003).

  Section 15.1 (1) BEFORE amended by 2006-32-69, effective May 18, 2006 (Royal Assent).

(1)  A trustee may invest property in any form of property or security in which a prudent investor might invest, including a security issued by a mutual fund as defined in the Securities Act.

  Section 15.5 (7) BEFORE amended by 2006-32-69, effective May 18, 2006 (Royal Assent).

(7)  Investment in a mutual fund referred to in section 15.1 (1) or a common trust fund referred to in section 15.1 (3) is not a delegation of authority with respect to the investment of trust property.

  Section 16 BEFORE repealed by 2002-33-24, effective February 28, 2003 (BC Reg 34/2003).

 National Housing Act mortgages

16  Despite section 15 (j), a trustee investing trust money in a first mortgage security on land in Canada, if the mortgage is an insured loan under the National Housing Act (Canada), is not chargeable with breach of trust merely because the amount of the loan exceeds 75% of the value of the property mortgaged.

  Section 17 BEFORE repealed by 2002-33-24, effective February 28, 2003 (BC Reg 34/2003).

 Investment rules

17  (1)  In determining market values, a trustee may rely on published market quotations.

(2)  A corporation that is a trustee must not invest trust money in its own securities.

(3)  In the case of an investment under section 15 (e), the inclusion, as additional security under the mortgages, charges or hypothecs, of other assets not of a class authorized by this Act as investments does not render the bonds, debentures or other evidence of indebtedness ineligible as an investment.

(4)  No investment may be made under section 15 (e), (f), (h), (i) or (l) that would at the time of making the investment cause the aggregate market value of the investments made under those paragraphs to exceed 35% of the market value at that time of the whole trust estate.

(5)  For the purpose of subsection (4), investments made by the testator or settlor and retained by the trustee under the authority of the trust instrument and that come within any of the classes authorized by section 15 (e), (f), (h), (i) or (l) are deemed to have been made by the trustee.

(6)  No sale or other liquidation of any investment made under section 15 (e), (f), (h), (i) or (l) is required merely because of a change in the ratio between the market value of that investment and the market value of the whole trust estate.

(7)  In case of investment under section 15 (i) or (l), not more than 30% of the total issue of shares of any corporation may be purchased for any trust.

(8)  No investment may be made under section 15 (i) or (l) unless the shares are listed at the time of investment on a recognized stock exchange.

  Section 17.1 was enacted by 2002-33-24, effective February 28, 2003 (BC Reg 34/2003).

  Section 18 BEFORE repealed by 2002-33-24, effective February 28, 2003 (BC Reg 34/2003).

 Additional investments

18  In addition to the investments authorized by section 15 or by the trust instrument, except if that instrument expressly prohibits the investment, a trustee may invest funds in the other securities the court on application in a particular case approves as fit and proper, but nothing in this section relieves the trustee of his or her duty to take reasonable and proper care with respect to investments so authorized.

  Section 20 BEFORE repealed by 2002-33-24, effective February 28, 2003 (BC Reg 34/2003).

 Investments in trustee's name

20  (1)  Except in the case of a security that cannot be registered, a trustee who invests in securities must require them to be registered in his or her name as the trustee for the particular trust for which the securities are held, and the securities may be transferred only on the books of the corporation in his or her name as trustee for the trust estate.

(2)  This section does not apply to a corporation that has a business authorization to carry on trust business.

  Section 27 (4) (a) BEFORE amended by 2009-13-195,Sch 1, effective March 31, 2014 (BC Reg 148/2013).

(a) a trustee who is dead include the case of a person who is nominated a trustee in a will but who dies before the testator, and

  Section 29 (3) BEFORE amended by 2007-14-201,Sch, effective December 1, 2007 (BC Reg 354/2007).

(3)  This section does not extend to land conveyed by way of mortgage for securing money subject to the trust, or to a share, stock, annuity or property that is only transferable in books kept by a company or other body, or in a manner directed by or under any Act of the Legislature.

  Section 38 BEFORE repealed by 2009-13-258, effective March 31, 2014 (BC Reg 148/2013).

Distribution of estate after notice

38   If a trustee or assignee acting under the trusts of a deed or assignment for the benefit of creditors generally, or a particular class or classes of creditors if the creditors are not designated by name in it, or an executor or administrator, has given, by publishing once in the Gazette and twice each week for 2 consecutive weeks or once a week for 4 consecutive weeks in a newspaper published or circulating in the county in which the debtor or the person deceased resides or resided, a notice to creditors and others to send in to the trustee, assignee, executor or administrator their claims against the person for the benefit of the creditors of whom the deed or assignment is made, or the estate of the testator or intestate, as the case may be, the trustee, assignee, executor or administrator is, at the expiration of the time named in those notices for sending in the claims, which time must not be less than 21 days after the date of the last publication, at liberty to distribute the proceeds of the trust estate, or the assets of the testator or intestate, as the case may be, or any part of them, among the parties entitled to them, having regard to the claims of which the trustee, assignee, executor or administrator then has notice, and is not liable for the proceeds of the trust estate or assets, as the case may be, or any part of them, so distributed to a person of whose claim the trustee, assignee, executor or administrator did not have notice at the time of the distribution of them, or a part of them, as the case may be, but this Act does not prejudice the right of a creditor or claimant to follow the proceeds of the trust estate or assets, as the case may be, or any part of them, into the hands of the persons who may have received them.

  Section 74 (1) BEFORE amended by 2009-13-260, effective March 31, 2014 (BC Reg 148/2013).

(1) The court may make orders and give directions concerning the manner in which the right to a stock or chose in action vested under the Estate Administration Act or this Act must be exercised.

  Section 86 (1) BEFORE amended by 2009-13-195,Sch 1, effective March 31, 2014 (BC Reg 148/2013).

(1) A trustee, executor or administrator may, without commencing any other proceeding, apply by petition to the court, or by summons on a written statement to a Supreme Court judge in chambers, for the opinion, advice or direction of the court on a question respecting the management or administration of the trust property or the assets of a testator or intestate.

  Section 87 (2) BEFORE amended by 2016-5-47,Sch 9, effective March 10, 2016 (Royal Assent).

(2) This Act does not extend to indemnify a trustee, executor or administrator in respect of an act done in accordance with the opinion, advice or direction referred to in subsection (1) if the trustee, executor or administrator has been guilty of fraud, willful concealment or misrepresentation in obtaining the opinion, advice or direction.

  Section 88 (1) BEFORE amended by 2009-13-263(a), effective March 31, 2014 (BC Reg 148/2013).

(1) A trustee under a deed, settlement or will, an executor or administrator, a guardian appointed by any court, a testamentary guardian, or any other trustee, however the trust is created, is entitled to, and it is lawful for the Supreme Court, or a registrar of that court if so directed by the court, to allow him or her a fair and reasonable allowance, not exceeding 5% on the gross aggregate value, including capital and income, of all the assets of the estate by way of remuneration for his or her care, pains and trouble and his or her time spent in and about the trusteeship, executorship, guardianship or administration of the estate and effects vested in him or her under any will or letters of administration, and in administering, disposing of and arranging and settling the same, and generally in arranging and settling the affairs of the estate as the court, or a registrar of the court if so directed by the court thinks proper.

  Section 90 BEFORE amended by 2003-37-45, effective May 29, 2003 (Royal Assent).

90  Nothing in section 88 or 89 applies to an official administrator under Part 5 of the Estate Administration Act or in any case in which the allowance is set by the instrument creating the trust.

  Section 95 BEFORE amended by 2016-5-47,Sch 9, effective March 10, 2016 (Royal Assent).

Implied indemnity of trustees

95   A trustee, without prejudice to the provisions of any instrument creating the trust, is chargeable only for money and securities actually received by the trustee even though the trustee signed a receipt for the sake of conformity, and is answerable and accountable only for the trustee's own acts, receipts, neglects or defaults, and not for those of other trustees or a banker, broker or other person with whom trust money or securities may be deposited, nor for the insufficiency or deficiency of securities or any other loss, unless it happens through the trustee's own willful default, and may reimburse himself or herself, or pay or discharge out of the trust premises, all expenses incurred in or about the execution of his or her trusts or powers.

  Section 97 (2) BEFORE amended by 2009-13-195,Sch 1, effective March 31, 2014 (BC Reg 148/2013).

(2) The administration of the property of a deceased person, whether a testator or intestate, is a trust, and the executor or administrator a trustee, within the meaning of this section and sections 96 and 98.

  Section 99 (1), (2) and (4) BEFORE amended by 2009-13-265, effective March 31, 2014 (BC Reg 148/2013).

(1) Unless his or her accounts are approved and consented to in writing by all beneficiaries, or the court otherwise orders, an executor, administrator, trustee under a will and judicial trustee must, within 2 years from the date of the granting of the probate or letters of administration or within 2 years from the date of his or her appointment, and every other trustee may at any time obtain from the court an order for passing his or her first accounts, and he or she must pass his or her subsequent accounts at the times the court directs.

(2) Despite subsection (1), an executor, administrator and trustee, including a judicial trustee, if so required by notice served on him or her at the instance of a person beneficially interested in the property covered by the trust, must pass his or her accounts annually within one month from the anniversary of the granting of the probate or letters of administration or of his or her appointment, but the court may on application make an order it considers proper as to the time and manner of passing the accounts.

(4) Subsection (1) does not apply to official administrators appointed under Part 5 of the Estate Administration Act, or to any executor, administrator or trustee under a will if the date of the granting of probate or letters of administration or of his or her appointment is before May 1, 1949.

  Supplement BEFORE repealed by 2006-33-1(2)(r), effective May 18, 2006 (Royal Assent).

[Supplement]

TRUSTEE ACT

[RSBC 1996] CHAPTER 464

1 Section 88 (1) and (2) of the Trustee Act is amended by adding "of an infant" after "guardian" wherever it appears.

1993-35-98.

 Commencement

2  Section 1 comes into force by regulation of the Lieutenant Governor in Council.

1993-35-100.