Malaysia legislation
Section 38
Section 38
Provided that—
(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
42 Laws of Malaysia ACT 208
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:
(i)
the principal beneficiary and his wife or her 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 material date, 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.