Trusts Act 2025
sec.129Restriction on application of trust capital
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sec.129 Restriction on application of trust capital
A trustee may not pay or apply an amount out of relevant capital, or apply a part of relevant capital, under section 128 if the payment or application would prejudice a person who is entitled to a prior life interest or other interest, whether vested or contingent, in the amount or part. However, the amount or part of the relevant capital may be paid or applied if— the person whose interest may be prejudiced— is an adult who has capacity for financial matters relating to the payment or application; and consents in writing to the payment or application; or the court, on application by the trustee, orders the amount to be paid or applied or the part of the relevant capital to be applied. (sec.129-ssec.1) A trustee may not pay or apply an amount out of relevant capital, or apply a part of relevant capital, under section 128 if the payment or application would prejudice a person who is entitled to a prior life interest or other interest, whether vested or contingent, in the amount or part. (sec.129-ssec.2) However, the amount or part of the relevant capital may be paid or applied if— the person whose interest may be prejudiced— is an adult who has capacity for financial matters relating to the payment or application; and consents in writing to the payment or application; or the court, on application by the trustee, orders the amount to be paid or applied or the part of the relevant capital to be applied.
- (a) the person whose interest may be prejudiced— (i) is an adult who has capacity for financial matters relating to the payment or application; and (ii) consents in writing to the payment or application; or
- (i) is an adult who has capacity for financial matters relating to the payment or application; and
- (ii) consents in writing to the payment or application; or
- (b) the court, on application by the trustee, orders the amount to be paid or applied or the part of the relevant capital to be applied.
- (i) is an adult who has capacity for financial matters relating to the payment or application; and
- (ii) consents in writing to the payment or application; or