Trustees Act 1967 · 2020 Revised Edition · Part 2 · Investments
12. Power to deposit at bank, to pay calls and to purchase dwelling house for beneficiary
Feedback & supportTrustees may, pending the negotiation and preparation of any mortgage or charge, or during any other time while an investment is being sought for, pay any trust money into a bank to deposit or other account, and all interest (if any) payable in respect of the money must be applied as income.
mortgage
“mortgage”, “mortgagee” and “mortgagor” include “charge”, “chargee” and “chargor” respectively, and further include and relate to every estate and interest regarded in equity as merely a security for money, and every person deriving title under the original mortgagee;
Trustees may apply capital money subject to a trust in payment of the calls on any shares subject to the same trust.
Trustees may —
where they are of the opinion that it is desirable to purchase a dwelling house for the use of any beneficiary under the trust, purchase a dwelling house with any trust funds, whether at the time in a state of investment or not; or
retain any dwelling house that forms part of the trust despite any trust for conversion contained in the instrument creating the trust,and permit the beneficiary to reside in the dwelling house upon such terms and conditions consistent with the trust and the extent of the interest of the beneficiary as the trustee thinks fit.
In subsection (3), “dwelling house” means a place of residence and includes a building or tenement wholly or principally used, constructed or adapted for human habitation.