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2 Clause 5, page 4, line 41, at end insert—
This subsection only applies if the trustee acted honestly and reasonably in making the distribution.'.
The LORD CHANCELLORMy Lords, I beg to move that the House do agree with the Commons in their Amendment No. 2. It is a Government amendment. It is designed to ensure that a trustee-beneficiary who receives part of a trust fund as his share on a distribution of the trust property will be able to rely on the proposed new defence to claims by latecomer beneficiaries only if he acted honestly and reasonably in making the distribution. This corresponds with the Law Reform Committee's recommendation.
Moved, That this House doth agree with the Commons in the said amendment.—(The Lord Chancellor.)
§ Lord ELWYN-JONESMy Lords, this is an eminently sensible suggestion, and it is good to learn that it was put forward by the Chancery Bar, which is not always famous as a great reforming organisation. At any rate on this occasion it has come to our aid, and I approve the amendment.