Hong Kong Ordinances

TRUSTEE ORDINANCE - SECT 34

Power of advancement

(1) Trustees may at any time or times pay or apply any capital money subject
to a trust, for the advancement or benefit in such manner as they may, in
their absolute discretion, think fit, of any person entitled to the capital of
the trust property or of any share thereof, whether absolutely or contingently
on his attaining any specified age or on the occurrence of any other event, or
subject to a gift over on his death under any specified age or on the
occurrence of any other event, and whether in possession or in remainder or
reversion, and such payment or application may be made notwithstanding that
the interest of such person is liable to be defeated by the exercise of a
power of appointment or revocation, or to be diminished by the increase of the
class to which he belongs: Provided that-

   (a)  the money so paid or applied for the advancement or benefit of any
        person shall not exceed altogether in amount one-half of the
        presumptive or vested share or interest of that person in the trust
        property; and

   (b)  if that person is or becomes absolutely and indefeasibly entitled to a
        share in the trust property the money so paid or applied shall be
        brought into account as part of such share; and

   (c)  no such payment or application shall be made so as to prejudice any
        person entitled to any prior life or other interest, whether vested or
        contingent, in the money paid or applied unless such person is in
        existence and of full age and consents in writing to such payment or
        application.

(2) This section applies only where the trust property consists of money or
securities or of property held upon trust for sale calling in and conversion,
and such money or securities, or the proceeds of such sale calling in and
conversion are not by statute or in equity considered as land.

(3) This section does not apply to trusts constituted or created before the
commencement of this Ordinance. [cf. 1925 c. 19 s. 32 U.K.]