Trustee Ordinance

(1)
Where any income, including an annuity or other periodical income payment, is
                directed to be held on protective trusts for the benefit of any person (in this
                section called the
principal beneficiary
) for the period of his life
                or for any less period, then, during the period (in this section called
the
                        trust period
) the said income shall, without prejudice to any prior
                interest, be held on the following trusts,
namely—
(a)
upon trust for the principal beneficiary during the trust period or until
                    he, whether before or after the termination of any prior interest, does or
                    attempts to do or suffers any act or thing, or until any event happens, other
                    than an advance under any statutory or express power, whereby, if the said
                    income were payable during the trust period to the principal beneficiary
                    absolutely during that period, he would be deprived of the right to receive the
                    same or any part thereof, in any of which cases, as well as on the termination
                    of the trust period, whichever first happens, this trust of the said income
                    shall fail or determine;
(b)
if the trust aforesaid fails or determines during the subsistence of the
                    trust period, then, during the residue of that period, the said income shall be
                    held upon trust for the application thereof for the maintenance or support, or
                    otherwise for the benefit, of all or any one or more exclusively of the other or
                    others of the following persons (that is to say
)—
(Amended
L.N. 7 of 1979
)
(i)
the principal beneficiary and his or her wife or husband, if any, and
                        his or her children or more remote issue, if any; or
(ii)
if there is no wife or husband or issue of the principal beneficiary in
                        existence, the principal beneficiary and the persons who would, if he were
                        actually dead, be entitled to the trust property or the income thereof or to
                        the annuity fund, if any, or arrears of the annuity, as the case may
                        be,
as the trustees in their absolute discretion, without being liable to
                    account for the exercise of such discretion, think fit.
(2)
This section does not apply to trusts coming into operation before the commencement of this Ordinance, and has effect subject to any variation of the implied trusts aforesaid contained in the instrument creating the trust.
(3)
Nothing in this section operates to validate any trust which would, if contained in the instrument creating the trust, be liable to be set aside.
[cf. 1925 c. 19 s. 33 U.K.]