Topic summary
Protective trust
Extracted from the Wikipedia article Discretionary trust.
Protective trust
The Protective Trust is a form of settlement found in England and Wales and several Commonwealth countries. It has marked similarities to asset-protection trusts found in several offshore jurisdictions and US Spendthrift trusts. To give protection to beneficiaries, a protective trust automatically converts into a discretionary trust, 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.