45Protective trusts

45 Protective trusts (1) Income may be directed to be held ‘on protective trusts’ for the benefit of any person (the principal beneficiary) for the period of his or her life or for any less period, and where there is such a direction the income shall during the period (the trust period), and without prejudice to any prior interest, be held upon trust as provided in this (2) During the trust period, or until the trust of the income fails or determines during the subsistence of the trust period, the income shall be held upon trust for the principal beneficiary. (3) The income of the trust fails or determines during the trust period if the principal beneficiary does something or an event happens that, if the income were payable to the principal beneficiary absolutely, the principal beneficiary would lose the right to receive the income or any part of it. (4) The income of the trust fails or determines whether the principal beneficiary does the thing, or the event happens, before or after the termination of any prior interest.

(5) The trust of the income does not fail or determine because of an advance under any statutory or express power. (6) If the trust of the income fails or determines during the trust period, income during the rest of the trust period is to be held on trust for application— (a) for the maintenance, support, or otherwise for the benefit of all or any 1 or more exclusively of the other or others of the principal beneficiary and his or her domestic partner (if any) and his or her children or more remote issue (if any) as the trustee in his or her absolute discretion thinks fit; or (b) if there is no domestic partner or issue of the principal beneficiary in existence, then for the maintenance, support, or otherwise for the benefit of all or any 1 or more exclusively of the other or others of the principal beneficiary and the persons who would, if he or she were actually dead, be entitled to the trust property or the income of it or of the annuity fund (if any) or arrears of the annuity, as the case may be, as the trustee in his or her absolute discretion thinks fit. Note For the meaning of domestic partner, see Legislation Act, s 169. (7) This section extends to an annuity or other periodical income payment directed to be held on protective trusts. (8) Any trust implied by this section may be set aside in any case where an express trust to the same effect might be set aside. (9) This section applies to a trust except so far as the contrary intention

Subdivision 2.2.6 Appropriation and payment to public trustee and guardian