TRUSTEE ACT 1936 - SECT 12

TRUSTEE ACT 1936 - SECT 12

12—Power to purchase dwelling house as residence for beneficiary

        (1)         Subject to the instrument creating the trust, a trustee may—

            (a)         purchase a dwelling house for a beneficiary to use as a residence; or

            (b)         enter into any other agreement or arrangement to secure for a beneficiary a right to use a dwelling house as a residence.

        (2)         Despite the terms of the instrument creating the trust, a trustee may, if to do so would not unfairly prejudice the interests of other beneficiaries, retain as part of the trust property a dwelling house for a beneficiary to use as a residence.

        (3)         A dwelling house purchased, retained or otherwise secured for use by the beneficiary as a residence may be made available to the beneficiary for that purpose on such terms and conditions consistent with the trust and the extent of the beneficiary's interest as the trustee thinks fit.

        (4)         The trustee may retain a dwelling house or any interest or rights in respect of a dwelling house acquired under this section after the use of the dwelling house by the beneficiary has ceased.

        (5)         In this section—

"dwelling house" includes—

            (a)         any building or part of a building designed, or converted or capable of being converted, for use as a residence; and

            (b)         any amenities or facilities for use in association with the use of a dwelling house.