Where two or more beneficiaries have the right under Section 12 to occupy trust property, the trustees are given power by this section to exclude or restrict such right in relation to some, but not all, of them. The section does not empower the trustees to prevent all the beneficiaries from occupying the land. However the trustees must act reasonably in exercising this power -- sub-section (2).

The trustees can impose "reasonable" conditions on a beneficiary's occupation of the land -- sub-section (3). These conditions can include requirements to pay the outgoings and to assume obligations "in relation to the land or to any activity which is or is proposed to be conducted there". It would seem that the conditions which trustees can impose on the beneficiary are similar to those which any landlord could impose on his tenant. The main activity which might be conducted on land (other than residence) is likely to be farming and this sub-section permits the trustees to require that the beneficiary farms in a proper manner. It is not, however, entirely clear what sanctions the trustees have if a beneficiary fails to observe the conditions: if he is the sole beneficiary the trustees do not have power to compel him to leave the land -- see Section 12(2) -- while if he is jointly entitled with others they do not have power to compel him to leave without the approval of the Court -- sub-section (7). (An application to the Court would be under Section 14 below.)

If one of several beneficiaries is prevented from occupying the land or his right to do so is restricted, the trustees may require the beneficiary who is permitted to occupy the land to pay him compensation or to forego "any payment or other benefit to which he would otherwise be entitled under the trust". The trustees will no doubt wish to consider carefully the fiscal effect of doing this before imposing such requirements. The suggestion that compensation should be paid direct to the other beneficiary or beneficiaries is odd; one would have expected the payment to be made to the trustees and distributed by them to the other beneficiaries.