PERSONAI TY IN POSSESSION AND REVERSION. be invested upon government securities, or in or upon any other stocks, funds, or securities authorized by law for trust funds, or in the purchase of inscribed stock of any British colony, or on mortgage of any leasehold houses or land in England or Wales, held for a term whereof sixty years at least shall be unexpired at the time of such investment, or upon a life interest in real or personal property, together with a policy or policies of assurance on the life of the person for whose life such interest shall be holden. [And the trustees (p) may, Power to lend if they think fit, lend money on any security authorized by tory mortthe said Act, or by these presents, in conjunction with money gages. advanced by any other person or persons by way of contributory loan, and in such case the security may be taken in the joint names of the several contributories or any two or more of them, or in the joint names of any two or more persons to be nominated in that behalf by the several contributories, or such other arrangement may be made in relation thereto as the trustees may think fit.] on contribu invest in pur 8. It shall be lawful for the trustees at any time during Power to the joint lives of the said A. B. and C. D., or the life of the chase of land. survivor of them, upon their, his, or her request in writing, to convert into money all or any part of the trust funds for the time being subject to the trusts of these presents, and to invest the moneys arising thereby in the purchase of any messuages, lands, or hereditaments (q) situate in England or Wales, and being freehold or copyhold of inheritance, or leasehold for any term of years whereof sixty years at least shall be unexpired at the time of the purchase, with liberty upon any such purchase to accept such title or evidence of title as the trustees shall think fit, without being answerable for any loss arising thereby; AND (p) This power of lending on contributory mortgages will be inserted or not, as in each case may be thought desirable. In the absence of a special power, trustees cannot lend on contributory mortgages. See p. 182. (q) Sometimes it is desired to confine the power to the purchase of a dwelling-house. In such case the words will be : "in the purchase of any messuage or dwelling-house with any land or ground adjoining thereto, or otherwise convenient to be held therewith, and so that the hereditaments to be purchased under this power shall be situate in England or Wales, and shall be freehold, &c." IN POSSESSION PERSONALTY the hereditaments so to be purchased as aforesaid shall be assured to the trustees, and shall be held by them UPON TRUST that they shall, with the consent in writing of the said A. B. and C. D., during their joint lives, and of the survivor of them during his or her life, and after the decease of such survivor, at the discretion of the trustees, sell the same, and shall stand possessed of the moneys to arise from such sale after paying thereout the expenses attending such sale upon the trusts and with and subject to the powers and provisions (including the power of purchasing hereditaments) by and in these presents declared and contained concerning the trust funds, which or the proceeds whereof shall have been laid out in the purchase of the said hereditaments, or such of them as shall be then subsisting and capable of taking effect; AND shall in the meantime, and until the re-sale of the purchased hereditaments, either permit the same to be occupied by the said A. B. and C. D. or the survivor of them, or with such consent or at such discretion as aforesaid let or demise the same or any part thereof either from year to year or for any term of years not exceeding twenty-one years, to take effect in possession at rack rent, and pay and apply the rents and profits thereof to the person or persons and in the manner to whom and in which the income of the trust funds laid out in the purchase thereof would for the time being have been payable or applicable if such purchase had not been made. Appointment of new trustees. Settlement to be void if marriage does not take place within twelve months. 9. THE power of appointing new trustees conferred by the Conveyancing and Law of Property Act, 1881, shall, for the purposes of these presents, be vested in the said A. B. and C. D. during their joint lives, and in the survivor of them during his or her life. 10. THE trustees, &c. (Power to trustees to employ solicitor, &c., and for trustee, if employed, to charge, suprà, p. 271.) 11. Ir the said intended marriage is not solemnized within twelve calendar months from the date hereof these presents shall be void, and the stocks, funds, shares, and securities comprised in the schedule hereto shall be retransferred to the said C. D. IN WITNESS, &c. THE SCHEDULE Above referred to. No. XI. SETTLEMENT of two SUMS OF MONEY, SECURED by the RUPTCY. MONEY SECURED BY FATHER'S COVENANT. BETWEEN Parties. THIS INDENTURE, made the day of H. B., of, &c. (father of intended husband), of the first part, A. B., of, &c., one of the sons of the said H. B. (intended husband), of the second part, M. D., of, &c. (father of intended wife), of the third part, C. D., spinster, one of the daughters of the said M. D. (intended wife), of the fourth part, and E. F., of, &c., G. H., of, &c., and I. K., of, &c. (trustees), of the fifth part (Recite agreement for marriage): AND WHEREAS upon the treaty for the Recital of said intended marriage it was agreed that such settlement settlement. should be made as is hereinafter expressed: NOW THIS Witnessing INDENTURE, made in consideration of the said intended part. marriage, WITNESSETH AND DECLARES as follows: intended father cove nants to pay sum of money to trustees 1. THE said H. B. hereby covenants with the said E. F., Husband's G. H., and I. K. (hereinafter called "the trustees") to pay to them within six calendar months after the solemnization of the said intended marriage, the sum of £3,000, with interest thereon after the rate of £4 per cent. per annum, computed from the day on which the marriage shall take place. after, marriage. covenants to 2. THE said M. D. hereby covenants with the trustees, that he Wife's father the said M. D. will, during his life, or his heirs, executors, or pay sum of administrators, will, within six calendar months after his death, money to pay to the trustees the sum of £3,000 sterling, with interest his death. thereon after the rate aforesaid, in case the same shall not be paid in the lifetime of the said M. D., computed from the day of his death. invest. 3. THE trustees shall, upon the receipt of the said sums of Trust to £3,000 and £3,000 respectively, with the consent of the said A. B. and C. D. during their joint lives, and of the survivor of them during his or her life, and after the decease of such survivor at the discretion of the trustees, invest the same, and may MONEY SECURED BY FATHER'S COVENANT. Trusts of income of husband's trust funds. Proviso in case of alienation with such consent or at such discretion as aforesaid, vary the investments thereof. The sum of £3,000 herein before covenanted to be paid by the said H. B., and the investments for the time being representing the same, are hereinafter referred to as "the husband's trust funds," and the sum of £3,000 herein before covenanted to be paid by the said M. D., and the investments for the time being representing the same, are hereinafter referred to as 66 the wife's trust funds." 4. THE trustees shall pay the income of the husband's trust funds to the said A. B. during his life, and after his decease to the said C. D. during her life: PROVIDED ALWAYS, that if the said A. B. shall assign or charge the said income, or any part or bankruptcy. thereof, or become bankrupt, or do or suffer any other act or thing whereby the said income, if payable to him absolutely, or any part thereof, would become vested in or payable to any other person, then and in such case the trust herein before declared in favour of the said A. B. shall cease and determine, and the trustees shall thenceforth during the life of the said A. B. pay the said income to the said C. D. (if living) for her separate use, and so that she shall not have power to dispose thereof in the way of anticipation; but if the said C. D. shall not be living at the time of the cesser of the said trust in favour of the said A. B., or if she shall subsequently die in his lifetime, then from and after the cesser of the said trust, or from and after the death of the said C. D., which shall last happen, the trustees may, at their discretion (r), during the remainder of the life of the said A. B. apply the said income or any part thereof for the support or benefit of the said A. B. and his issue (if any) or any of them, in such manner as the trustees shall think fit, and shall pay or apply the surplus (if any) of the said income or the whole thereof, if none shall be applied in manner aforesaid, to the person or persons and in the manner to whom and in which the said income would be payable or applicable under these presents if the said A. B. were dead. Trusts of income of 5. THE trustees shall pay the income of the wife's trust (r) As the intention of the parties is generally not to take away the income from the husband except so far as is necessary to prevent its passing into the hands of alienees or creditors, this object seems on the whole to be best attained by a discretionary power vested in the trustees during the rest of the husband's life, as in the text. MONEY SECURED BY FATHER'S COVENANT. funds. proviso on funds to the said C. D. during her life, for her separate use, and so that she shall not have power while under coverture to dispose thereof in the way of anticipation, and after her death shall pay the said income to the said A. B. if he shall survive her during wife's trust his life: PROVIDED ALWAYS, that if the said A. B. shall assign or Similar charge the said income or any part thereof, or become bankrupt, alienation or or do or suffer any other act or thing whereby the said income, bankruptcy. if payable to him absolutely, or any part thereof, would become vested in or payable to any other person, then and in such case the trust declared by this present article in favour of the said A. B. shall cease and determine: AND from and after the death of the said C. D., or the cesser of the last-mentioned trust, which shall last happen, and during the remainder of the life of the said A. B. the trustees may at their discretion apply the said income or any part thereof for the support or benefit of the said A. B. and his issue (if any) or any of them in such manner as the trustees shall think fit, and shall pay or apply the surplus (if any) of the said income or the whole thereof, if none shall be applied in manner aforesaid, to the person or persons and in the manner to whom and in which the said income would be payable or applicable under these presents if the said A. B. were dead. Trusts for issue, and ultimate trust of husband's 6. AFTER the death of the survivor of the said A. B. and C. D. the trustees, &c. (Trust for issue and hotchpot clause, suprà, pp. 292, 293): AND if there shall be no child of the trust funds for said intended marriage who being a son shall attain the age husband's of twenty-one years, or being a daughter shall attain that age father, and in or marry, then as to the husband's trust funds, IN TRUST (s) appointees for appointees of default of husband. ultimate trust, husband or wife. (s) Where the money settled on the part of either party is found by his Observations or her father, it is not quite clear what ought to be the form of the ultimate as to the proper trust in case of no issue of the marriage. The father may expect that the form of the money should come back to him in that event, and that the ultimate trust where money should be framed accordingly. This seems right in theory, but it would is settled by often lead in practice to an inequality. Suppose, for instance, that the father of father dies shortly afterwards, and then the son or daughter (as the case may be) becomes a widower or widow, without issue of the marriage. It is probable that the father will by his will have given his residue among his other children, thinking the child in question to be already provided for by the settlement. If this is so, the child will be reduced to a life interest, and will be unable, in case of a second marriage, to make any settlement; whereas the other children will probably have an absolute interest in their shares. On the whole, it is recommended that, in the absence of special instructions, a power of appointment by deed be given to the father, and that, subject to such power, the ultimate trust be in |