16. Conversion of perishable property.—
Where the trust is created for the benefit of several
persons in succession, and the trust-property is of a wasting nature or a future or reversionary
interest, the trustee is bound, unless an intention to the contrary may be inferred from the
instrument of trust, to convert the property into property of a permanent and immediately profitable
character.
Illustrations
(a) A bequeaths to B all his property in trust for C during his life, and on his death for D, and on D ’s death
for E. A’s property consists of three leasehold houses, and there is nothing in A ’s will to show that he intended the
houses to be enjoyed in specie. B should sell the houses, and invest the proceeds in accordance with section 20.
(b) A bequeaths to B his three leasehold houses in Calcutta and all the furniture therein in trust for C during his
life, and on his death for D, and on D’s death for E. Here an intention that the houses and furniture should be
enjoyed in specie appears clearly, and B should not sell them.
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