sec.92Appropriation to pay annuity

sec.92 Appropriation to pay annuity

This section applies if a trust instrument provides for the payment of an annuity, whether or not the trust instrument provides that the annuity may be charged on the trust property. The trustee may set aside and appropriate out of any trust property available for payment of the annuity an amount (the appropriated amount ) that, in the trustee’s opinion at the time of appropriation, is enough, when invested, to provide out of the income of the investment the amount required to pay the annuity. After the appropriation has been made— the annuitant has the same right of recourse to the capital and income of the appropriated amount as the annuitant would have had against the trust property if no appropriation had been made; and the trustee may distribute the residue of the trust property and the income of the trust property in accordance with the trust instrument. On the distribution of the residue of the trust property and the income of the trust property under subsection (3) (b) , the residue and the income cease to be liable for the annuity. In this section— annuity includes any periodic payment. (sec.92-ssec.1) This section applies if a trust instrument provides for the payment of an annuity, whether or not the trust instrument provides that the annuity may be charged on the trust property. (sec.92-ssec.2) The trustee may set aside and appropriate out of any trust property available for payment of the annuity an amount (the appropriated amount ) that, in the trustee’s opinion at the time of appropriation, is enough, when invested, to provide out of the income of the investment the amount required to pay the annuity. (sec.92-ssec.3) After the appropriation has been made— the annuitant has the same right of recourse to the capital and income of the appropriated amount as the annuitant would have had against the trust property if no appropriation had been made; and the trustee may distribute the residue of the trust property and the income of the trust property in accordance with the trust instrument. (sec.92-ssec.4) On the distribution of the residue of the trust property and the income of the trust property under subsection (3) (b) , the residue and the income cease to be liable for the annuity. (sec.92-ssec.5) In this section— annuity includes any periodic payment.

• (a) the annuitant has the same right of recourse to the capital and income of the appropriated amount as the annuitant would have had against the trust property if no appropriation had been made; and
• (b) the trustee may distribute the residue of the trust property and the income of the trust property in accordance with the trust instrument.