TRUSTEE ACT 1936 - SECT 33
TRUSTEE ACT 1936 - SECT 33
33—Powers of trustees as to maintenance and accumulation
(1) Where property is
held in trust for any person—
(a) who
is for the time being an infant; or
(b)
subject to his attaining a specified age; or
(c)
contingently upon the happening of any event,
the trustee may in his discretion—
(i)
in the case of an infant, pay to the parent or guardian
of the infant or to the person having the custody or control of the infant or
otherwise apply for or towards the maintenance, education, benefit or
advancement of the infant; or
(ii)
in the case of any beneficiary not an infant, pay to that
beneficiary or on his behalf or for his maintenance or benefit or to some
person (selected or approved by the trustee),
the whole or any part of the income of the property held in trust as
aforesaid.
(2) The power
conferred by this section may be exercised at any time or from time to time in
the discretion of the trustee and whether there is any other property or fund
applicable for the same purpose or any person bound by law to provide and
capable of providing for such infant or beneficiary or not.
(3) The power
conferred by this section shall not be capable of being exercised so as to
prejudice any interest in or charge over the property which is prior to that
of the infant or other beneficiary: Provided that where the interest of the
infant or other beneficiary is not vested, and would not apart from the power
given by this section permit any participation in the intermediate income, but
such intermediate income is not specially disposed of and would pass to some
other person only under a residuary or general gift of property in the
instrument (if any) creating the trust or in the absence of such gift as upon
intestacy or as upon a resulting trust, then the intermediate income shall be
available for the exercise of the power given by this section and the interest
of such person as lastly mentioned in the intermediate income shall not be
deemed prior to that of the infant or other beneficiary for the purposes of
this section.
(4) To the extent that
the intermediate income is not paid or applied pursuant to the power conferred
by this section or otherwise the trustee may accumulate that income within the
limits allowed by law by investing it and the income resulting therefrom from
time to time in securities authorised by law or by the trust instrument (if
any).
(5) Such accumulations
of income may in any year be paid or applied pursuant to the powers conferred
by this section as if they were income arising in that year.
(6) Notwithstanding
that an infant or other beneficiary may participate in intermediate income by
reason of the exercise of the power conferred by this section the trustee
shall hold the accumulations or the residue thereof as an accretion to the
corpus of the property from which the accumulations arose as one fund
therewith for all purposes other than those hereinbefore particularised.
(7) This section shall
be deemed to apply to a vested annuity as if the annuity were income of
property held by a trustee upon trust to pay that income to the annuitant for
the same period as that for which the annuity is payable save that in any case
accumulations as hereinbefore provided shall be held in trust for the
annuitant absolutely.
(8) 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.
(9) This section only
applies where the trust was created after the commencement of the Trustee Act
Amendment Act 1941 .
(10) Notwithstanding
the repeal of section 33 of this Act as in force before the passing of the
Trustee Act Amendment Act 1941 that repealed section shall, in relation
to trusts created before the passing of that Act be deemed to continue in
force, and to have continued in force as if it had not been repealed.