38Use of capital for maintenance education advancement and benefit of beneficiaries

38 Use of capital for maintenance education advancement and benefit of beneficiaries (1) Where under a trust a person is entitled to the capital of the trust property or any share thereof, the trustees, in such manner as they in their absolute discretion think fit, may from time to time out of that capital pay or apply for the maintenance education advancement or benefit of that person, an amount not exceeding in all $2000 or half that capital (whichever is the greater) or with the consent of the Court an amount greater than that amount. (2) The power conferred by this section may be exercised whether the person is entitled absolutely or contingently on his attaining any specified age or on the occurrence of any other event, or subject to a gift over on his death under any specified age or on the occurrence of any other event, and notwithstanding that the interest of the person so entitled is liable to be defeated by the exercise of a power of appointment or revocation, or to be diminished by the increase of the class to which he belongs. (3) The power conferred by this section may be exercised whether the person is so entitled in possession or in remainder or reversion. (4) If the person is or becomes absolutely and indefeasibly entitled to a share in the trust property, the money so paid or applied shall be brought into account as part of that share. (5) No payment or application pursuant to this section shall be made so as to prejudice any person entitled to any prior life or other prior interest, whether vested or contingent, in the money paid or applied unless that person is in existence and of full age and consents in writing to the payment or application. (6) For the purposes of this section the trustees may raise money by sale, mortgage or exchange of the trust property. No. 5770 s. 39.