HC Deb 14 June 1922 vol 155 cc383-5

  1. (1) Where any income (including an annuity or other periodical income payment) is directed to he held on alimentary trusts for the benefit of any person (in this Section called "the principal beneficiary") for the period of his life or for any less period then during that period (in this Section called the "trust period") the said income shall, without prejudice to any prior interest, be held on the following trusts, namely:—
    1. Upon trust for the principal beneficiary during the trust period or until he (whether before or after the termination of any prior interest) does or attempts to do or suffers any act or thing or until any event happens (other than an advance under any statutory or express power) whereby if the said income were payable during the trust period to the principal beneficiary absolutely during that period he would be deprived of the sight to receive the sense or any part thereof, in any of which cases, as well as on the termination of the trust period, which first happens, this trust of the said income shall fail or determine;
    2. (ii) If the trust aforesaid fails or determines during the subsistence of the trust period, then, during the residue of that period, the said income shall be held upon trust for the application thereof for the maintenance, support, or otherwise for the benefit of all or any one or more exclusively of the other or others of the principal beneficiary and his or her wife or husband, if any, and his or her children or more remote issue, if any, as the trustees in their absolute discretion, without being liable to account for the exercise of such discretion, think fit, or, if there shall be no wife, husband, or issue of the principal beneficiary in existence, then for the maintenance, support, or otherwise for the benefit of all or any one or more exclusively of the other or others of the principal beneficiary and the persons who would, if he were actually dead, he entitled to the trust property or the income thereof or of the annuity fund, if any, or arrears of the annuity, as the case 384 may be, as the trustees in their absolute discretion, without being liable to account as aforesaid, think fit.
  2. (2) This Section only applies to trusts coming into operation after the commencement of this Act, and shall have effect subject to any variation of the implied trusts aforesaid contained in the instrument creating the trust.
  3. (3) Nothing in this Section shall operate to validate any trust which, if contained in the instrument creating the trust, would be liable to be set aside.—[Mr. Dennis Herbert.]

Brought up, and read the First time.

Mr. D. HERBERT

T beg to move, "That the Clause be read a Second time."

The object of this very long Clause is to be able to express in simple words what are alimentary trusts, and to be enabled to include in a document, by means of the simple words "alimentary trusts," certain provisions usual in our practice at the present time which are set out in the proposed new Clause. It is a Clause to deal with money which is settled for the benefit of some persons who, in ordinary language, are not to be trusted with money, and the only way to do that at present is to give discretionary powers to the trustees, under which they, in effect, allow money to the beneficiary from week to week or month to month, as the case may be. I am sure some of my Scottish Friends in the House will be gratified that we have been able to find at least something in Scottish law that is worthy of being copied in this country. This simply brings into English law what. I believe, is commonly known in Scotland as an alimentary trust.

Mr. BUTLER LLOYD

I beg to second the Motion.

The SOLICITOR-GENERAL (Sir Leslie Scott)

I have carefully considered this proposed new Clause in consultation with those who understand the subject a great deal better than I do, and I am satisfied, from what I have been told, that this is a Clause which I ought to recommend the House to accept. It is purely permissive. It follows what is a. common form in English documents today, and, as the hon. Member who moved it said, it is well recognised in Scottish Law. If the cautious folk across the Border think the Clause is safe, and, after experience, have adhered to it as part of their law, I do not think we shall he very rash in accepting it.

Question put, and agreed to.

Clause read a Second time, and added to the Bill.