MONEY PAYABLE UNDER POLICY OF ASSURANCE NOT TO FORM PART OF THE ESTATE OF THE INSURED

By section 11 of the Married Women Property Act 1882, a married woman may by the power of making contracts herein-before contained effect a policy upon her own life or the life of her husband for her separate use; and the same and all benefit thereof shall enure accordingly.

A policy of assurance effected by any man on his own life, and expressed to be for the benefit of his wife or of his children or his wife and children or any of them or by any woman on her own life, and expressed to be for the benefit of her husband or of her children or her husband and children or any of them, shall create a trust in favor of the objects therein named, and the money payable under any such policy shall not, so long as any object of the remains unperformed, form part of the estate of the insured, or be subject to his or her debts: provided that if it shall be proved that the policy was effected and the premiums paid with intent to defraud the creditors of the insured, they shall be entitled to receive, out of the money payable under the policy a sum equal to the premiums so paid. The insured may by the policy or by any memorandum under his or her hand, appoint a trustee or trustees of the money payable under the policy and from time to time appoint a new trustee or new trustees thereof, and may make provision for the appointment of a new trustee or trustees thereof and the investment of the money payable under any such policy.

In default of any such appointment of a trustee, such policy immediately on its being effected shall vest in the insured and his or her legal personal representatives in trust for the purposes aforesaid.

If at the time of the death of the insured or at any time afterward, there shall be no trustee or it shall be expedient to appoint a new trustee or new trustees may be appointed by any court having jurisdiction.

The receipt of a trustee or trustees duly appointed, or in default of any such appointment, or default of notice to the insurance office, the receipt of the legal personal representatives of the insured shall be a discharged to the office for the sum secured by the policy, or for the value thereof, in whole or in part.

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