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Clause 88—(Power To Apply Income For Maintenance And To Accumulate Surplus Income During A Minority)

Volume 155: debated on Wednesday 14 June 1922

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(1) Where any property is held by trustees in trust for any person for any interest whatsoever, whether vested or contingent, then subject to any prior interests or charges affecting that property—

  • (i) During the infancy of such person, if his interest so long continues, the trustees may, at their sole discretion, pay to his parent or guardian, if any, or otherwise apply for or towards his maintenance, education or benefit, the income of that property, or any part thereof, whether there is any other fund applicable to the same purpose, or any person bound by law to provide for his maintenance or education, or not; and
  • (ii) If such person on attaining the age of twenty-one years has not a vested interest in such income the trustees shall thenceforth pay the income of that property and of any accretion thereto under Sub-section (2) of this Section to him, until he either attains a vested interest therein or dies, or until failure of his interest.
  • I beg to move, in Sub-section (1, i), after the word "benefit," to insert the words

    "the whole or such part (if any) as may under all the circumstances be reasonable of."
    This Amendment goes with two Amendments following in my name, and also with an Amendment in the name of the Solicitor-General. The Clause, as originally drawn, is to the effect that the trustees may at their sole discretion pay to the parent or guardian of an infant, or otherwise apply towards his maintenance, education, or benefit, the income of the property or any part thereof; and the object of slightly altering the wording as I propose is in order to be able to introduce lower down certain provisions as to what is reasonable and what considerations the trustees should have regard to. In view of the Amendment standing on the Paper in the name of the Solicitor-General, I imagine he will accept this Amendment of mine and the following one in my name, but I do not know what course he will take with regard to my further Amendment after that, which, if I may use the expression, swallows his up.

    Amendment agreed to.

    Further Amendments made:

    In Sub-section (l, i), leave out the words "or any part thereof."—[ Mr. D. Herbert.]

    At the end of Sub-section (1), insert the words

    "(iii) Provided that in deciding whether the whole or any part of the income of the property is during a minority to be paid or applied for the purposes aforesaid, the trustees shall have regard to the age of the infant and his requirements and generally to the circumstances of the case, and in particular to what other income (if any) is applicable for the same purposes; and where trustees have notice that the income of more than one fund is applicable for those purposes then, so far as practicable, unless the entire income of the funds is paid or applied as aforesaid or the Court otherwise directs, a proportionate part only of the income of each fund shall be so paid or applied."—[Mr. D. Herbert.]