205Protection of policy money on person’s death

#### 205 Protection of policy money on person’s death (1) If, on the death of a person, money becomes payable to the person’s estate under a policy effected on the person’s life, the following provisions apply: (a) except as permitted by paragraph (b), the money is not liable to be applied or made available: (i) under any judgment, order or process of a court; or (ii) in any other manner whatsoever; in payment of the person’s debts; (b) the money may be applied in payment of a debt of the person if: (i) the person had entered into a contract that provided expressly for the money to be so applied; or (ii) the person had charged the money with the payment of the debt; or (iii) the person gave an express direction, in his or her will or other testamentary document signed by the person, that the money be so applied; (c) none of the following constitutes an express direction for the purposes of subparagraph (b)(iii): (i) a mere direction that debts be paid; (ii) a charge of debts on the whole or a part of the person’s estate; (iii) the creation of a trust for the payment of debts. (2) This section has effect regardless of when a policy was issued. (3) This section has effect subject to the Bankruptcy Act 1966.