sec.61Power to apply income for maintenance etc. and to accumulate surplus income during a minority

### sec.61 Power to apply income for maintenance etc. and to accumulate surplus income during a minority When any property is held by trustees in trust, whether absolutely or contingently for a beneficiary who is an infant, the trustee may, at the trustee’s absolute discretion, pay to the infant’s parent or guardian (if any) or otherwise apply for or towards the infant’s maintenance, education (including past maintenance or education) advancement or benefit, the income of that property or any part thereof, whether there is any other fund applicable to the same purpose, or any person bound by law to provide for the infant’s maintenance or education or not. During the infancy of any such person, if the person’s interest so long continues, the trustee 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 authorised investments, and shall hold those accumulations as follows— if any such person— attains full age, or marries under that age, and the person’s interest in such income during the person’s infancy or until the person’s marriage is a vested interest; or on attaining full age or on marriage under that age becomes entitled to the property from which income arose in fee simple, absolute or determinable, or absolutely, or for an entailed interest; the trustee shall hold the accumulations in trust for such person absolutely, but without prejudice to any provision with respect thereto contained in any settlement by him or her made under any statutory powers during the person’s infancy, and so that the receipt of such person after marriage, and though still an infant, shall be a good discharge; in any other case—the trustee 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 1 fund with such capital for all purposes; but the trustee may, at any time during the infancy of such person if the person’s interest so long continues, apply those accumulations, or any part thereof, as if they were income arising in the then current year. Where any property is held by a trustee in trust for a beneficiary of full age who has a contingent interest in that property, the trustee may, at the trustee’s sole discretion, pay to such beneficiary or otherwise apply for or towards the beneficiary’s maintenance, education (including past maintenance or education) advancement or benefit, the income of that property or any part thereof. This section shall apply 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 4% per annum; and where in the case of a contingent interest the limitation or trust would, but for the operation of a protective trust (whether created or statutory) carry the intermediate income of the property, that limitation or trust shall for the purposes of this subsection be deemed notwithstanding the protective trust to carry the intermediate income. This section applies to a vested annuity in like manner as if the annuity were the income of property held by a trustee 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 the annuitant’s personal representative absolutely. This section does not apply where the instrument (if any) under which the interest arises came into operation before the commencement of this Act. The provisions of subsection (2) do not apply where, and to the extent that, a contrary intention is expressed in the trust instrument (if any). s 61 amd 1981 No. 72 s 17 (sec.61-ssec.1) When any property is held by trustees in trust, whether absolutely or contingently for a beneficiary who is an infant, the trustee may, at the trustee’s absolute discretion, pay to the infant’s parent or guardian (if any) or otherwise apply for or towards the infant’s maintenance, education (including past maintenance or education) advancement or benefit, the income of that property or any part thereof, whether there is any other fund applicable to the same purpose, or any person bound by law to provide for the infant’s maintenance or education or not. (sec.61-ssec.2) During the infancy of any such person, if the person’s interest so long continues, the trustee 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 authorised investments, and shall hold those accumulations as follows— if any such person— attains full age, or marries under that age, and the person’s interest in such income during the person’s infancy or until the person’s marriage is a vested interest; or on attaining full age or on marriage under that age becomes entitled to the property from which income arose in fee simple, absolute or determinable, or absolutely, or for an entailed interest; the trustee shall hold the accumulations in trust for such person absolutely, but without prejudice to any provision with respect thereto contained in any settlement by him or her made under any statutory powers during the person’s infancy, and so that the receipt of such person after marriage, and though still an infant, shall be a good discharge; in any other case—the trustee 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 1 fund with such capital for all purposes; but the trustee may, at any time during the infancy of such person if the person’s interest so long continues, apply those accumulations, or any part thereof, as if they were income arising in the then current year. (sec.61-ssec.3) Where any property is held by a trustee in trust for a beneficiary of full age who has a contingent interest in that property, the trustee may, at the trustee’s sole discretion, pay to such beneficiary or otherwise apply for or towards the beneficiary’s maintenance, education (including past maintenance or education) advancement or benefit, the income of that property or any part thereof. (sec.61-ssec.4) This section shall apply 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 4% per annum; and where in the case of a contingent interest the limitation or trust would, but for the operation of a protective trust (whether created or statutory) carry the intermediate income of the property, that limitation or trust shall for the purposes of this subsection be deemed notwithstanding the protective trust to carry the intermediate income. (sec.61-ssec.5) This section applies to a vested annuity in like manner as if the annuity were the income of property held by a trustee 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 the annuitant’s personal representative absolutely. (sec.61-ssec.6) This section does not apply where the instrument (if any) under which the interest arises came into operation before the commencement of this Act. (sec.61-ssec.7) The provisions of subsection (2) do not apply where, and to the extent that, a contrary intention is expressed in the trust instrument (if any). - (a) if any such person— (i) attains full age, or marries under that age, and the person’s interest in such income during the person’s infancy or until the person’s marriage is a vested interest; or (ii) on attaining full age or on marriage under that age becomes entitled to the property from which income arose in fee simple, absolute or determinable, or absolutely, or for an entailed interest; the trustee shall hold the accumulations in trust for such person absolutely, but without prejudice to any provision with respect thereto contained in any settlement by him or her made under any statutory powers during the person’s infancy, and so that the receipt of such person after marriage, and though still an infant, shall be a good discharge; - (i) attains full age, or marries under that age, and the person’s interest in such income during the person’s infancy or until the person’s marriage is a vested interest; or - (ii) on attaining full age or on marriage under that age becomes entitled to the property from which income arose in fee simple, absolute or determinable, or absolutely, or for an entailed interest; - (b) in any other case—the trustee 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 1 fund with such capital for all purposes; - (i) attains full age, or marries under that age, and the person’s interest in such income during the person’s infancy or until the person’s marriage is a vested interest; or - (ii) on attaining full age or on marriage under that age becomes entitled to the property from which income arose in fee simple, absolute or determinable, or absolutely, or for an entailed interest;