Protection of purchasers claiming under certain void appointments
157 Protection of purchasers claiming under certain void appointments
An instrument purporting to exercise a power of appointment over property, which, in default of and subject to any appointment, is held in trust for a class or number of persons of whom the appointee is one, shall not (save as hereinafter provided) be void on the ground of fraud on the power as against a purchaser in good faith:
Provided that, if the interest appointed exceeds, in amount or value, the interest in such property to which immediately before the execution of the instrument the appointee was presumptively entitled under the trust in default of appointment, having regard to any advances made in his favour and to any hotchpot provision, the protection afforded by this section to a purchaser shall not extend to such excess.
In this section a purchaser in good faith means a person dealing with an appointee of the age of not less than twenty-five years for valuable consideration in money or money's worth, and without notice of the fraud, or of any circumstances from which, if reasonable inquiries had been made, the fraud might have been discovered.
Persons deriving title under any purchaser entitled to the benefit of this section shall be entitled to the like benefit.
This section shall apply only to dealings effected after the commencement of this Act.
No. 3754 s. 158.
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