Section 17

that its terms are capable of variation; or

that the trust itself or a power exercisable under the trust is revocable, either in whole or in part.

Where a Labuan trust provides that the terms of the trust may be varied, such power to vary shall be without prejudice to the power vested in the Court by this Act for the variation of the terms of the trust.

No variation of the terms of a Labuan trust or revocation of an offshore trust or a power exercisable under a Labuan trust shall prejudice anything lawfully done by a trustee in relation to a Labuan trust prior to his receiving notice of such variation or revocation.

Subject to the terms of the trust, where a Labuan trust is revoked, either in whole or in part, the trustee shall hold the trust

Labuan Trusts 31

property affected by the revocation for the settlor absolutely or, if the settlor is dead, for the settlor’s personal representative or estate.

Failure or lapse of interest