Part VI

Miscellaneous and Supplementary

Power to insure.
34
1
For section 19 of the Trustee Act 1925 (power to insure) substitute—

Power to insure.
19
1
A trustee may—
a
insure any property which is subject to the trust against risks of loss or damage due to any event, and
b
pay the premiums out of the trust funds.
2
In the case of property held on a bare trust, the power to insure is subject to any direction given by the beneficiary or each of the beneficiaries—
a
that any property specified in the direction is not to be insured;
b
that any property specified in the direction is not to be insured except on such conditions as may be so specified.
3
Property is held on a bare trust if it is held on trust for—
a
a beneficiary who is of full age and capacity and absolutely entitled to the property subject to the trust, or
b
beneficiaries each of whom is of full age and capacity and who (taken together) are absolutely entitled to the property subject to the trust.
4
If a direction under subsection (2) of this section is given, the power to insure, so far as it is subject to the direction, ceases to be a delegable function for the purposes of section 11 of the Trustee Act 2000 (power to employ agents).
5
In this section “trust funds” means any income or capital funds of the trust.
2
In section 20(1) of the Trustee Act 1925 (application of insurance money) omit “whether by fire or otherwise”.
3
The amendments made by this section apply in relation to trusts whether created before or after its commencement.
1925 c. 19.
1925 c. 19.