Appendix B Searches

p

Trustee's right to determine nature of income

7 The trustee may, instead of relying on the definition of ‘income of the trust fund’ set out in
this deed, decide at any time prior to 30 June ina financial year to adopt, for that financial
year, another definition of ‘income of the trust fund’. The trustee's power to make such a
decision under this clause 7 is unconfined and not merely-administrative.

Trustee’s right to accumulate income

8 The trustee may decide to accumulate any income of the trust fund for any period that is
allowed by the law governing this deed. When that decision is made, the relevant income
(less any tax payable on it) becomes capital of the trust fund and the trustee ceases to
have any power to distribute it under clause 6.

Failure to exercise discretion

9 If the trustee fails to exercise the trustee’s discretion under clause 6 or 8 on or prior to
30 June in a financial year, the income in respect of which the discretion has not been
exercised will be held by the trustee in trust successively for the persons described below
and in accordance with the following rules:

9.1 The named beneficiaries who are alive on 30 June of that financial year. If
there are more than one, then in equal shares.

9.2 if there are no named beneficiaries alive on 30 June of that financiai year, the
next of kin of the named beneficiaries in the share that the relevant named
beneficiary would have received had all the named beneficiaries been alive on
30 June of that financial year. if a named beneficiary has more than one next of
kin, then each named beneficiary's share is held in trust for the next of kin in
equal shares.

9.3 {f there is no next of kin, the income is to be treated as. having been
accumulated.

Trustee’s right to advance part of the trust fund

10 The trustee may, at any time before the vesting day, distribute any part of the trust fund
(except a part already held on trust for a person under clause 18) to a named beneficiary
or a member of a class of eligible beneficiaries, either immediately and absolutely or to be
used for the maintenance, education, advancement or benefit of that person in any
manner the trustee decides. The amount ceases to be part of the trust fund that the
trustee can distribute or advance before the vesting day.

Trustee’s right to distribute from a class of income

1 The trustee may, at any time before 30 June in a financial year, decide that a distribution
of income for that year is to be made solely from income that the trustee regards as a
particular class of income.

Trustee may determine what is income and what is capital

12 In determining the income of the trust for a financial year, the trustee may decide
whether, and to what extent, a receipt or outgoing is on account of income or capital. The

got B