159Constructive ownership of land holdings and other property: discretionary trusts

159 Constructive ownership of land holdings and other property: discretionary trusts

159 Constructive ownership of land holdings and other property: discretionary trusts

(1) A person or a member of a class of persons in whose favour, by the terms of a discretionary trust, capital the subject of the trust may be applied—

(a) in the event of the exercise of a power or discretion in favour of the person or class, or

(b) in the event that a discretion conferred under the trust is not exercised,

is, for the purposes of this section, a beneficiary of the trust.

(2) A beneficiary of a discretionary trust is taken to own or to be otherwise entitled to the property the subject of the trust.

(3) For the purposes of this Chapter, any property that is the subject of a discretionary trust is taken to be the subject of any other discretionary trust—

(a) that is, or

(b) any trustee of which (in the capacity of trustee) is,

a beneficiary of it.

(4) Subsection (3) extends to apply to property that is the subject of a discretionary trust only by the operation of that subsection.

(5) In this section, person includes a landholder.

Note.

Discretionary trust is defined in the Dictionary.

s 159: Ins 2009 No 51, Sch 1.2 [2].