sec.86Power to apportion expenditure between income and capital and recoup particular expenditure

sec.86 Power to apportion expenditure between income and capital and recoup particular expenditure

A trustee may, in relation to the trust property, apportion expenditure made under section 85 between capital and income or otherwise among the persons entitled to the capital or income in the way the trustee considers equitable. If all or part of the expenditure is made out of capital, the trustee may recoup the expenditure made out of capital from income, if to do so would be equitable in all the circumstances. If all or part of the expenditure is made out of income, the trustee may recoup the expenditure made out of income from capital, if to do so would be equitable in all the circumstances. The exercise of power under this section is subject to— this Act; and any direction of the court; and an express contrary intention in the trust instrument. (sec.86-ssec.1) A trustee may, in relation to the trust property, apportion expenditure made under section 85 between capital and income or otherwise among the persons entitled to the capital or income in the way the trustee considers equitable. (sec.86-ssec.2) If all or part of the expenditure is made out of capital, the trustee may recoup the expenditure made out of capital from income, if to do so would be equitable in all the circumstances. (sec.86-ssec.3) If all or part of the expenditure is made out of income, the trustee may recoup the expenditure made out of income from capital, if to do so would be equitable in all the circumstances. (sec.86-ssec.4) The exercise of power under this section is subject to— this Act; and any direction of the court; and an express contrary intention in the trust instrument.

• (a) this Act; and
• (b) any direction of the court; and
• (c) an express contrary intention in the trust instrument.