Cap. 331 Art. 26Accumulation, advancement or appropriation of trust property.

(1) Where the terms of the trust direct or authorise the accumulation for a period of all or part of the income of the trust, the trustee shall distribute the income of the trust which is not accumulated as required or authorised by the terms of the trust.

(2) Subject to the terms of the trust, and subject to any prior interest or charges affecting the trust property, where a beneficiary is a minor and whether or not his interest is a vested interest or an interest which will become vested on attaining the age of majority or a later age or upon the happening of any event, the trustee may -

(a) accumulate the income attributable to the interest of such beneficiary pending the attainment of the age of majority or such later age or the happening of such an event; or

(b) apply such income or part of it to or for the maintenance, education or other benefit of such beneficiary; or

(c) advance or appropriate to or for the benefit of any such beneficiary such interest or part of such interest.

(3) The receipt given by a parent or the lawful guardian of a beneficiary who is a minor shall be sufficient discharge to the trustee for a payment made under subarticle (2).

(4) Subject to the terms of the trust, and subject to any prior interest or charges affecting the trust property, the trustee may advance to, or apply for the benefit of, a beneficiary part of the trust property prior to the date of the happening of the event upon the happening of which the beneficiary becomes entitled absolutely thereto.

(5) Subject to the terms of the trust, a trustee may appropriate trust property in or towards the satisfaction of the interest of a beneficiary in such manner and in accordance with such valuation as the trustee may think fit.

(6) Any part of the trust property advanced, applied or appropriated as aforesaid shall be brought into account in determining from time to time the share of the beneficiary in the trust property.

(7) No part of the trust property advanced, applied or appropriated as provided in this article shall exceed the presumptive, contingent or vested share of the beneficiary in the trust property.