TRUSTEE ACT 1936 - SECT 35A
TRUSTEE ACT 1936 - SECT 35A
35A—Investment of pecuniary bequest
(1) A trustee may set
aside and invest the amount of any pecuniary bequest in any investments
authorised by law or by the will or codicil of the testator and thereafter the
investments so made or the proceeds thereof and the interest or other income
arising therefrom shall be taken in full satisfaction and discharge of such
bequest and all persons interested or entitled or who may become interested or
entitled to the estate of the testator or any part thereof shall be bound by
such setting aside and investment and any gain or loss consequent thereupon
shall accrue to or be borne by the persons interested or entitled or who shall
become interested or entitled to such legacy and the interest or income
arising therefrom according to their respective rights or interests.
(2) A trustee may set
aside and invest in any investments authorised by law or by the trust
instrument a fund to answer an annuity or annuities by means of the income of
the fund or otherwise, provided that at the time of appropriation the fund
would be sufficient if it were invested in Government securities of the
Commonwealth of Australia at par to provide an income exceeding the annuity or
annuities by at least twenty-five per centum thereof and thereafter the
annuitant or annuitants shall be limited to the income or if the annuity or
annuities were originally payable out of or charged upon corpus the income and
corpus of the fund so set apart and the trustee shall not be personally liable
for the deficiency of any such annuity over and above the income or the corpus
and income of such fund as the case may be.
(3) A trustee shall
have power from time to time to transpose any investments made under this
section for other like investments.
(4) This section
applies only if or to the extent a contrary intention is not expressed in the
instrument (if any) creating the trust.
(5) This section
applies to trusts created either before or after the commencement of the
Trustee Act Amendment Act 1941 .