Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies if the person who effects a child's advancement policy dies or becomes bankrupt:
(a) during the child's lifetime; and
(b) before the child reaches the vesting age.
(2) Subject to any dealings in relation to the policy effected by the policy owner before his or her death or bankruptcy, the representative of the policy owner holds the policy in trust for the child until:
(a) the child reaches the vesting age; or
(b) the child dies before reaching the vesting age.
(3) The representative of the policy owner may:
(a) assign, mortgage, charge, surrender, vary or otherwise deal with the policy; and
(b) apply the proceeds as he or she thinks fit for the maintenance or benefit of the child and the payment of premiums in respect of the policy.
(4) The company which issued the policy is under no obligation to see to the application of the proceeds of the policy.
(5) If the child dies before reaching the vesting age, the money payable in respect of the policy is to be applied in the way in which it would be applied apart from this section.
(6) In this section:
"dealings" does not include any testamentary dealings.
"representative" , in relation to a policy owner, means:
(a) if the policy owner has died--the executor or administrator of the policy owner; or
(b) if the policy owner is bankrupt--the Official Receiver or the trustee of the policy owner's estate.