Protection of Personal and Property Rights Act 1988

108D Money or damages may be held upon trust

(1)

Without limiting section 108C, this section applies where the court directs that all or part of any money or damages awarded to a specified person, or of money to which the person is entitled under an agreement, compromise, or settlement approved under section 108C, must be held on trust for the person under this section by a trustee corporation or any other person.

(2)

The amount must be invested and held by the trustee upon trust—

(a)

to make payments to any person out of the income and capital of the amount as directed by the court; and

(b)

to apply the income and capital of the amount, or so much of the income and capital as the trustee from time to time thinks fit, for or towards the maintenance or education (including past maintenance or education) or the advancement or benefit of the specified person.

(3)

The specified person has no power, either alone or in conjunction with any other person or persons, to terminate the trusts upon which the amount is held or to modify or extinguish those trusts.

(4)

The interest of the specified person in the income and capital of the amount must not, while it remains in the hands of the trustee, be alienated or pass by bankruptcy, or be liable to be seized, sold, attached, or taken in execution by process of law.

(5)

This section applies subject to—

(a)

any direction of the court that an immediate payment be made from the money or damages; and

(b)

any other direction or condition given or imposed by the court.

Compare: 1957 No 36 s 66(4)

Section 108D: inserted, on 1 March 2002, by section 170(1) of the Public Trust Act 2001 (2001 No 100).