Report No. 66
8.58. Point (n)-Section 6(1)-Words referring to "object"-Amendments recommended.-
It would appear that in section 6(1), the words "so long as any object of the trust remains" are ambiguous. The corresponding words in the English Act1 have also been commented upon, as was noticed in a sind case.2 We think that opportunity should be taken of stating the position more definitely, in this regard. The re-draft which we are recommending in section 6(1) will, it is hoped, solve the problem.3
One result of the amendment which we are proposing will be that, subject to any contrary intention, a named wife takes an absolute vested interest in the policy so that, if she dies before her husband, it forms part of her estate.4 This position was established in England after some controversy.5
However, the husband of the woman would have a lien on premiums paid by him after her death, being payments made by a trustee to preserve the trust property.6
1. Section 11, Married Women's Property Act, 1882, (Appendix 3).
2. Shamdas, para. 8.47.
3. See para. 8.61, infra.
4. Cousins v. Sun Life Assurance Society, 1933 Chancery 126.
5. Kipatrick's Policy Trust (in re:), (1966) 2 WLR 1346.
6. Smith's Estate (in re:), 1937 Chancery 636.