DUTIES ACT 2001 - SECT 60
Beneficiary’s trust interest is percentage of or proportionate to property held on trust
DUTIES ACT 2001 - SECT 60
Beneficiary’s trust interest is percentage of or proportionate to property held on trust
60 Beneficiary’s trust interest is percentage of or proportionate to
property held on trust
(1) A beneficiary’s trust interest is—
(a) for a beneficiary who is a
taker in default under a discretionary trust—
(i) the percentage of the
trust income or trust property the beneficiary would receive in default of
appointment by the trustee; or
(ii) if the beneficiary would receive both
trust income and trust property in default of appointment by the trustee, the
greater percentage of the trust income or trust property the beneficiary would
receive; or
(b) for a beneficiary of a trust, other than a discretionary
trust, whose entitlement is solely to income of the property held on
trust—the proportion that the value of the beneficiary’s entitlement bears
to the value of the entitlements of all beneficiaries expressed as a
percentage; or
(c) for another beneficiary—the proportion that the
beneficiary’s entitlement under the trust bears to the unencumbered value of
the property held on trust expressed as a percentage.
(2) For subsection (1)
(c) , the beneficiary’s entitlement under the trust is—
(a) the amount of
the unencumbered value of the property held on trust that the beneficiary
could receive as a result of the acquisition of the beneficiary’s trust
interest determined at the time of acquisition of the interest; or
(b) the
entitlement stated in subsection (3) if—
(i) the beneficiary’s entitlement
under the trust is not subject to a prior life interest; and
(ii) the
beneficiary’s entitlement under the trust may increase, including from
nothing, on the fulfilment of any condition, contingency or the exercise or
non-exercise of any power or discretion; and
(iii) the condition,
contingency, power or discretion is part of an arrangement a significant
purpose of which is to lessen the amount of the beneficiary’s entitlement at
a particular time.
(3) For subsection (2) (b) , the beneficiary’s
entitlement under the trust is the maximum interest in the property held on
trust that the beneficiary would have on the fulfilment of the condition or
contingency or the exercise or non-exercise of the power or discretion.
(4)
For a majority trust acquisition, a reference in this section to a
beneficiary’s entitlement under the trust includes the entitlement under the
trust of related persons of the beneficiary.