(1) Where under a trust a person is entitled to the capital of the trust
property or any share thereof, the trustee may from time to time pay or apply
any capital money subject to the trust, not exceeding altogether in amount
one-half of the value of the property or share, for the advancement or benefit
of such person or where such person is an infant, for the maintenance,
education, advancement or benefit of such person in such manner as the trustee
shall in the trustee's absolute discretion think fit.
(2) The power conferred
by this section may be exercised whether the person is entitled absolutely or
contingently on the person's attaining any specified age or on the occurrence
of any other event, or subject to a gift over on the person's death under any
specified age or on the occurrence of any other event, and, notwithstanding
that the interest of the person so entitled is liable to be defeated by the
exercise of a power of appointment or revocation, or to be diminished by the
increase of the class to which the person belongs.
(3) The power conferred by
this section may be exercised whether the person is so entitled in possession
or in remainder or reversion.
(4) If the person is or becomes absolutely and
indefeasibly entitled to share in the trust property, the money so paid or
applied shall be brought into account as part of such share.
(5) No such
payment or application shall be made so as to prejudice any person entitled to
any prior life or other interest, whether vested or contingent, in the money
paid or applied unless such person is in existence and of the age of eighteen
years or upwards and consents in writing to the payment or application.
(6)
This section applies only where the trust property consists of money or
securities or property held upon trust for sale calling in and conversion, and
the money or securities or the proceeds of the sale calling in and conversion
are not by statute or in equity considered as land, or applicable as capital
money for the purposes of Part 4 of the Conveyancing and Law of Property Act
1898 .
(7) This section applies only if and as far as a contrary intention is
not expressed in the instrument, if any, creating the trust, and shall have
effect subject to the terms of that instrument and to the provisions therein
contained.
(8) From and after the commencement of the Conveyancing, Trustee
and Probate (Amendment) Act 1938 this section shall apply to trusts created
before as well as after the commencement of the lastmentioned Act.
