Victorian Current Acts Victorian Current ActsS. 37(1) amended by No. 9075 s. 5(1)(2).
(1) Where any property is held by trustees in trust for any person for any interest whatsoever, whether vested or contingent, then, subject to any prior interests or charges affecting that property—
(a) during the minority of any such person, if his interest so long continues, the trustees may, at their sole discretion, pay to his parent or guardian (if any) or otherwise apply for or towards his maintenance, education, advancement, or benefit, the whole or such part (if any) of the income of that property as may in all the circumstances be reasonable, whether or not there is—
(i) any other fund applicable to the same purpose; or
(ii) any person bound by law to provide for his maintenance or education; and
S. 37(1)(b) amended by No. 9075 s. 5(2).
(b) if such person on attaining the age of eighteen years has not a vested interest in such income, the trustees shall thenceforth pay the income of that property and of any accretion thereto under subsection (2) of this section to him, until he either attains a vested interest therein or dies, or until failure of his interest:
Provided that, in deciding whether the whole or any part of the income of the property is during a minority to be paid or applied for the purposes aforesaid, the trustees shall have regard to the age of the minor and his requirements and generally to the circumstances of the case, and in particular to what other income (if any) is applicable for the same purposes; and where trustees have notice that the income of more than one fund is applicable for those purposes, then, so far as practicable, unless the entire income of the funds is paid or applied as aforesaid or the Court otherwise directs, a proportionate part only of the income of each fund shall be so paid or applied.
S. 37(2) amended by No. 9075 s. 5(2).
(2) During the minority of any such person, if his interest so long continues, the trustees shall accumulate all the residue of that income in the way of compound interest by investing the same and the resulting income thereof from time to time in authorized investments, and shall hold those accumulations as follows:
S. 37(2)(a) amended by Nos 9075 s. 5(1), 9427 s. 5(Sch. 4 item 12).
(a) If any such person—
(i) attains the age of eighteen years, or marries under that age, and his interest in such income during his minority or until his marriage is a vested interest; or
(ii) on attaining the age of eighteen years or on marriage under that age becomes entitled to the property from which such income arose in fee-simple, absolute or determinable, or absolutely, or for an entailed interest—
the trustees shall hold the accumulations in trust for such person absolutely, but without prejudice to any provision with respect thereto contained in any settlement by him made under any statutory powers during his minority, and so that the receipt of such person after marriage, and though still a minor, shall be a good discharge; and
(b) In any other case the trustees shall, notwithstanding that such person had a vested interest in such income, hold the accumulations as an accretion to the capital of the property from which such accumulations arose, and as one fund with such capital for all purposes, and so that if such property is settled land, such accumulations shall be held upon the same trusts as if the same were capital money arising therefrom—
but the trustees may, at any time during the minority of such person if his interest so long continues, apply those accumulations, or any part thereof, as if they were income arising in the then current year.
(3) This section shall apply in the case of a contingent interest only if the limitation or trust carries the intermediate income of the property, but it applies to a future or contingent legacy by the parent of, or a person standing in loco parentis to, the legatee, if and for such period as, under the general law, the legacy carries interest for the maintenance of the legatee, and in any such case as last aforesaid the rate of interest shall (if the income available is sufficient, and subject to any rules of court to the contrary) be Five per centum per annum. Where in the case of a contingent interest the limitation or trust would, but for the operation of a protective trust (whether created or statutory) carry the intermediate income of the property, that limitation or trust shall for the purposes of this subsection be deemed notwithstanding the protective trust to carry the intermediate income [9] .
S. 37(4) amended by No. 10087 s. 3(1)(Sch. 1 item 305).
(4) This section shall apply to a vested annuity in like manner as if the annuity were the income of property held by trustees in trust to pay the income thereof to the annuitant for the same period for which the annuity is payable, save that in any case accumulations made during the minority of the annuitant shall be held in trust for the annuitant or his personal representatives absolutely.
(5) This section shall not apply where the instrument (if any) under which the interest arises came into operation before the commencement of this Act, but in cases of instruments coming into operation before such commencement section thirty-four of the Trusts Act 1915 (as amended by section nine of the Real Property Act 1918 ) and section thirty-five of the Trusts Act 1915 or section thirty-one of the Trustee Act 1928 or section thirty-seven of the Trustee Act 1953 (as the case requires) shall notwithstanding the repeal of those Acts continue to apply to such instruments.
No. 5770 s. 38.