39. Protective trusts

( 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 that period (in this section called the "trust period") the 1157

BRUNEI DARUSSALAM GOVERNMENT GAZETTE 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 the 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) -

the principal beneficiary and his or her wife or husband, if any, and his or her children or more remote issue, if any; or

This section has effect subject to any variation of the implied trusts aforesaid contained in the trust instrument.

Nothing in this section operates to validate any trust which would if contained in the trust instrument be liable to be set aside.