Trustee Ordinance

(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 infancy 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 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
(b)
if such
                    person on attaining full age 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) to him, until he either attains a vested interest
                    therein or dies, or until failure of his interest:
(Amended
32 of 1990 s. 8
)
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 infant 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.
(2)
During the infancy 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—
(a)
if any such
person—
(i)
attains full age, or marries before attaining full age, and his
                        interest in such income during his infancy or until his marriage is a vested
                        interest; or
(ii)
on attaining full age or on marriage before attaining full age becomes
                        entitled to the property from which such income arose absolutely,
the trustees shall hold the accumulations in trust for such person
                    absolutely, and so that the receipt of such person after marriage, and though
                    still an infant, shall be a good discharge; and
(Amended
32 of 1990 s. 8
)
(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,
but the trustees may, at any time during the infancy 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 applies 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 $5 per cent per
                annum.
(4)
This section applies 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 infancy of the annuitant shall be held in trust
                for the annuitant or his personal representatives absolutely.
(5)
This section does not apply where the instrument, if any, under which the
                interest arises came into operation before the commencement of this
                Ordinance.
[cf. 1925 c. 19 s. 31 U.K.]