The concept of a protective trust may seem Victorian to modern trust practitioners.  Indeed such trusts originated in the Victorian era to protect 'impecunious' or 'spendthrift' beneficiaries against claims by their creditors.  However, as this article will discuss, there is still a place in the 21st Century for these type of trusts.    

Under section 33 Trustee Act 1925 (the Act) a trust may be described as a 'protective trust' where a beneficiary is entitled to receive income as of right.  If there is an event which deprives the life tenant of their right to income, whether that event is voluntary or in...