Section 74 Pre-1981 trusts for disabled persons.

where settled property ceases to be property to which this section applies, otherwise than by virtue of a payment out of the settled property for the benefit of the person mentioned in subsection (1) above, and

in a case in which paragraph (a) above does not apply, where the trustees make a disposition (otherwise than by way of such a payment) as a result of which the value of settled property to which this section applies is less than it would be but for the disposition.

is by reason of mental disorder (within the meaning of the M1Mental Health Act 1983) incapable of administering his property or managing his affairs, or

is in receipt of an attendance allowance under section F164 of the Social Security Contributions and Benefits Act 1992 or F2section 64 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 F3, or

is in receipt of a disability living allowance under section 71 of the Social Security Contributions and Benefits Act 1992 F4or section 71 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 by virtue of entitlement to the care component at the highest or middle rate F5, or

is in receipt of pension age disability payment which is a category of disability assistance specifically for older people given in accordance with regulations made under section 31 of the Social Security (Scotland) Act 2018 F6, or

is in receipt of Scottish adult disability living allowance, which is a category of disability assistance specifically for adults which takes the form of a living allowance given in accordance with regulations made under section 31 of the Social Security (Scotland) Act 2018 by virtue of entitlement to the care component at the highest or middle rate.