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732:'s permission. The right to receive income from a trust would ordinarily be an asset in the hands of the beneficiary and could be sold, thwarting the intention of the donor to spread the gift over the recipient's lifetime. Additionally on a bankruptcy the right to the income would be sold by the beneficiary's trustee in bankruptcy.
753:
Protective trusts are subject to challenge under creditor protection legislation as are any other forms of asset-protection. However many jurisdictions do not permit a trust to be broken where a debtor who remains a discretionary beneficiary only under a trust and cannot access the fund without the
745:
Such protective trusts have a longstanding history. To reduce the verbose definitions that had previously to be recited in the establishing documents of a protective trust, in
England and Wales s33 of the
750:(and equivalent legislation in other jurisdictions) provides that this protection will arise in any trust described as a "protective trust" in its trust deed.
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The establishment of this discretionary trust is ordinarily exempt from the charge to UK inheritance tax on the establishment of discretionary trusts.
739:, under which the beneficiary has no right to the income, if anything is done which breaches a condition specified in the document creating the trust.
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To give protection to beneficiaries, a protective trust automatically converts into a
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In such a trust assets are ordinarily held to pay an income to the
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exercise of the trustees' discretion in his favour.
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55:. Unsourced material may be challenged and
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713:countries. It has marked similarities to
119:Learn how and when to remove this message
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53:adding citations to reliable sources
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705:is a form of settlement found in
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316:Acts of independent significance
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606:Advance directive (Living will)
505:Hague Convention (conflict law)
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801:. You can help Knowledge by
383:Accumulation and maintenance
185:Joint wills and mutual wills
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236:Incorporation by reference
795:law in the United Kingdom
793:This article relating to
853:United Kingdom law stubs
512:Application in civil law
309:Satisfaction of legacies
715:asset-protection trusts
585:Disclaimer of interest
390:Interest in possession
178:Legal history of wills
528:Estate administration
446:Reversionary interest
251:Testamentary capacity
554:Power of appointment
519:Dishonest assistance
290:Lapse and anti-lapse
284:Property disposition
49:improve this article
737:discretionary trust
485:Governing doctrines
719:Spendthrift trusts
561:Simultaneous death
476:Supplemental needs
222:Attestation clause
68:"Protective trust"
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109:December 2009
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70: –
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64:Find sources:
58:
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34:This article
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803:expanding it
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711:Commonwealth
709:and several
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658:Criminal law
621:Totten trust
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452:Testamentary
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365:Common types
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358:Constructive
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159:Part of the
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47:Please help
35:
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726:beneficiary
611:Blind trust
578:Advancement
566:Slayer rule
425:Spendthrift
414:Other types
842:Categories
631:common law
420:Protective
397:Charitable
161:common law
79:newspapers
537:Intestacy
436:Remainder
407:Incentive
351:Resulting
302:Abatement
297:Ademption
209:Oral will
36:does not
758:See also
663:Evidence
651:Property
641:Contract
542:Testator
459:Honorary
216:Sections
730:trustee
547:Probate
402:Purpose
346:Express
244:Contest
197:Codicil
144:estates
93:scholar
57:removed
42:sources
629:Other
337:Trusts
163:series
139:trusts
95:
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633:areas
270:Fraud
169:Wills
135:Wills
100:JSTOR
86:books
799:stub
701:The
646:Tort
371:Bare
142:and
72:news
40:any
38:cite
51:by
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