I5.621 Protective trusts—overview

IHT, trusts and estates

I5.621 Protective trusts—overview

Division I5.6     Other favoured trusts

For updates affecting this Division please see Part I0 Updates

Protective trusts

I5.621 Protective trusts—overview

Protective trusts are used for providing for beneficiaries who are in need of protection. Typically, they have been used where a beneficiary is financially irresponsible or whose spouse or civil partner is financially irresponsible.

From a legal perspective, protective trusts are created using the powers contained in the Trustee Act 1925, s 33. The income of the trust fund is held for the person ('the principal beneficiary') until he forfeits his right to receive it (usually as a result of an attempted

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