Protective Trusts Law and Legal Definition

Protective trusts are trusts designed to protect the trust property. It protects the assets of the trustor in his or her lifetime from the effect of events such as trustor's bankruptcy , divorce or tax protection. In case of such an event, the trust property or income derived from it is applied at the absolute discretion of the trustee for the benefit of the trust's beneficiaries. Protective trusts ensure continued support to the beneficiary and secure it against the beneficiary's improvidence or incapacity.