Would a particular testamentary trust payout deemed to have lapsed if the condition(s) is met BEFORE the testator dies?

Here’s a question most companies and firms avoid ( and for good reasons);

Say in the testamentary trust there’s a condition – "To give him/her lump sum of S$30 000 on the following condition: When he/she reaches age 30". If the trust beneficiary is 35 years old when the testator dies, does this mean there’s no need to pay? (i.e. payout deemed to have lapsed)

The answer is not always straightforward, especially if you are asking about the exact outcome if someone were to contest such a payout in the future as this falls under legal advice which largely depends on the exact circumstance there and then.

Specifically, on our platform, using the same example above the payout does not automatically lapse even if the trust beneficiary is already passed age 30 upon the testator's death. Payout to the trust beneficiary only lapses when the trust beneficiary dies as payouts are specified by default to apply ONLY DURING the trust beneficiary’s lifetime.

Regardless, for trustee(s) given full discretionary powers, the trustee(s) will make the judgment to decide whether to pay or not (acting based on the closest interpretation of the testator’s intention and in the best interest of the beneficiary[s]). Various factors come into play in determining the testator's intention given the exact situation (e.g. what the money is meant for; if prior monies are given for that purpose; what circumstances have changed since the signing of the document; etc.).

This is one of the many reasons why professional trust companies usually require you to give them full discretionary powers. There can be many different situations and "what if's" which makes it impractical to plan for ALL of them, especially if the trust is meant to exist for a long time. It might be better to leave it to your trustee(s) as you would not be around to know the exact circumstance then.

Ultimately, it is always much better to update the Will accordingly to prevent any ambiguity.

Regardless, if you want to be more specific about it now, you can edit the payout wording accordingly. For example:

<<insert payout condition>> This payout is deemed to have lapsed if the condition is already met before I pass away.

<<insert payout condition>> This payout is to be paid out if the condition is already met before I pass away.