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 \[2\].