Victorian Current Acts

TRUSTEE ACT 1958 - SECT 39

    (1)     Where any income, including an annuity or other periodical income payment, is directed to be held on protective trusts for the benefit of any person (in this section called the principal beneficiary ) for the period of his life or for any less period, then, during that period (in this section called the trust period ) the said income shall, without prejudice to any prior interest, be held on the following trusts, namely—

        (a)     upon trust for the principal beneficiary during the trust period or until he, whether before or after the termination of any prior interest, does or attempts to do or suffers any act or thing, or until any event happens, other than an advance under any statutory or express power, whereby if the said income were payable during the trust period to the principal beneficiary absolutely during that period, he would be deprived of the right to receive the same or any part thereof, in any of which cases, as well as on the termination of the trust period, whichever first happens, this trust of the said income shall fail or determine;

S. 39(1)(b) amended by No. 10087 s. 3(1)(Sch. 1 item 306).

        (b)     if the trust aforesaid fails or determines during the subsistence of the trust period, then, during the residue of that period, the said income shall be held upon trust for the application thereof for the maintenance education advancement or benefit of all or of any one or more exclusively of the other or others of the following persons (that is to say)—

              (i)     the principal beneficiary and his or her wife or husband (if any), and his or her children or more remote issue (if any); or

              (ii)     if there is no wife or husband or issue of the principal beneficiary in existence, the principal beneficiary and the persons who would, if he were actually dead, be entitled to the trust property or the income thereof or to the annuity fund (if any), or arrears of the annuity, as the case may be—

as the trustees in their absolute discretion, without being liable to account for the exercise of such discretion, think fit.

    (2)     Nothing in this section operates to validate any trust which would, if contained in the instrument creating the trust, be liable to be set aside.

Part III—Appointment and discharge of trustees

No. 5770 s. 40.