s.68Provision for case of trust to sell and re-invest in land
68
Section 68Part 14 — Settlement by Way of Trusts for Sale

Provision for case of trust to sell and re-invest in land

←→ Navigate  ·  Click subsection badges to collapse  ·  Press ? for help

Any land, or any estate or interest in land, which under or by virtue of any deed, will or agreement, covenant to surrender, statute or other instrument or any number of instruments is subject to a trust or direction for sale of that land, estate or interest, and for the application or disposal of the money to arise from the sale, the income of that money, the income of the land until sale or any part of that money or income, for the benefit of any person for his life, or any other limited period, or for the benefit of two or more persons concurrently for any limited period, and whether absolutely or subject to a trust for accumulation of income for payment of debts or other purpose, or to any other restriction, shall be deemed to be settled land, and the instrument or instruments under which the trust arises shall be deemed to be a settlement; and the person for the time being beneficially entitled to the income of the land, estate or interest aforesaid until sale, whether absolutely or subject as aforesaid, shall be deemed to be tenant for life thereof; or if two or more persons are so entitled concurrently, then those persons shall be deemed to constitute together the tenant for life thereof; and the persons, if any, who are for the time being, under the settlement, trustees for sale of the settled land, or having power of consent to, approval of or control over the sale, or if under the settlement there are no such trustees, then the persons, if any, for the time being, who are by the settlement declared to be trustees thereof for purposes of this Law are for purposes of this Law trustees of the settlement.
In every such case the provisions of this Law referring to a tenant for life, to a settlement and to settled land, shall extend to the person or persons aforesaid, and to the instrument or instruments under which his or their estate or interest arises, and to the land therein comprised, subject and except that —
any reference in this Law to the predecessors or successors in title of the tenant for life, the remaindermen or reversioners or other persons interested in the settled land, shall be deemed to refer to the persons interested in succession or otherwise in the money to arise from sale of the land, the income of that money or the income of the land, until sale (as the case may require);
capital money arising under this Law from the settled land shall not be applied in the purchase of land unless such application is authorised by the settlement in case of capital money arising thereunder from sales or other dispositions of the settled land, but may, in addition to any other mode of application authorised by this Law, be applied in any mode in which capital money arising under the settlement from any such sale or other disposition is applicable thereunder, subject to any consent required or direction given by the settlement with respect to the application of trust money of the settlement;
capital money arising under this Law from the settled land and the securities in which the same is invested, shall not for any purpose of disposition, transmission or devolution, be considered as land unless the same would, if arising under the settlement from a sale or disposition of the settled land have been so considered, and the same shall be held in trust for and shall go to the same persons successively in the same manner, and for and on the same estates, interests and trusts as the same would have gone and been held if arising under the settlement from a sale or disposition of the settled land, and the income of such capital money and securities shall be paid or applied accordingly; and
land of whatever tenure acquired under this Law by purchase, in exchange or on partition, shall be conveyed to and vested in the trustees of the settlement, on the trusts and subject to the powers and provisions which, under the settlement or by reason of the exercise of any power of appointment or charging therein contained, are subsisting with respect to the settled land, or would be so subsisting if the same had not been sold, or as near thereto as circumstances permit, but so as not to increase or multiply charges or powers of charging.
In the case of a settlement within the meaning of this section, any consent not required by the terms of the settlement is not by force of anything contained in this Law to be deemed necessary to enable the trustees of the settlement, or any other person, to execute any of the trusts or powers created by the settlement.
In the case of every other settlement, not within the meaning of this section, where two or more persons together constitute the tenant for life for the purposes of this Law, then notwithstanding anything contained in section 61(2), requiring the consent of all those persons, the consent of one only of those persons is by force of that section to be deemed necessary to the exercise by the trustees of the settlement, or by any other person, of any power conferred by the settlement exercisable for any purpose provided for in this Law.
With respect to the powers conferred by this section the following provisions are to have effect —
those powers are not to be exercised without the leave of the Court;
the Court may, by order, in any case in which it thinks fit, give leave to exercise all or any of those powers, and the order is to name the person or persons to whom leave is given;
the Court may, from time to time, rescind or vary any order made under this section, or may make any new or further order;
so long as an order under this section is in force neither the trustees of the settlement, nor any person other than a person having the leave, shall execute any trust or power created by the settlement, for any purpose for which leave is by the order given, to exercise a power conferred by this Law;
an order under this section shall be recorded in the Record Office;
any person dealing with the trustees from time to time, or with any other person acting under the trusts or powers of the settlement, is not to be affected by an order under this section, unless and until the order is duly recorded as aforesaid;
an application to the Court under this section may be made by the tenant for life, or by the persons who together constitute the tenant for life, within the meaning of this section;
an application to rescind or vary an order, or to make any new or further order under this section may be made also by the trustees of the settlement or by any person beneficially interested under the settlement; and
the person or persons to whom leave is given by an order under this section shall be deemed the proper person or persons to exercise the powers conferred by this section, and shall have, and may exercise, those powers accordingly.

Defined Terms

settled landsettlementtenant for lifetrustees of the settlementcapital moneytrust for sale

Cross References