Protective Trusts-secret trusts-trusts laws and accounts, Financial Accounting

Assignment Help:

PROTECTIVE TRUSTS

The income of property may be settled on such terms as to restrict its availability to creditors of the beneficiary in the following ways:

(a) Determinable interests:
In this case the interest of the beneficiary ceases on alienation or bankruptcy. Note that a person cannot settle property on himself until bankruptcy since this would defeat the claims of his creditors.

(b) Discretionary trusts:
In this case the trustees have a complete discretion whether to pay the income to the beneficiary or not.

(c) Protective trusts
If income is settled on "protective trusts", this operates to give –

  • A life interest for the principal beneficiary determinable on alienation or bankruptcy; and thereafter;
  • A discretionary trust for the trustees to apply the income for the benefit of the principal beneficiary, his spouse and issue, or, if there is no spouse or issue then for the benefit of the principal beneficiary and those who would be entitled to the trust property or the income thereof were he dead.

Related Discussions:- Protective Trusts-secret trusts-trusts laws and accounts

Interest is deductible on schedule a, Heather & Terry have a mortgage on th...

Heather & Terry have a mortgage on their primary residence of $750,000 and a mortgage on their vacation home of $410,000. In 2013, they incurred $46,400 of mortgage interest expens

Distinctions between a business combination and a merger, What are the lega...

What are the legal distinctions between a business combination, a merger, and a consolidation? Mergers Vs Acquisitions: When one company takes over another and clearly esta

Inventory ratio, inventory ratio of 4 compared to 7.1

inventory ratio of 4 compared to 7.1

Financial reporting, Describe Following questions:- Q.1 What organizatio...

Describe Following questions:- Q.1 What organizations are responsible for governing financial reporting? What is the role of each organization? How have the roles changed in the

Determine the amount of translation adjustment, Alliance Corporation (an Au...

Alliance Corporation (an Australian company) invests 1,000,000 marks in a foreign subsidiary on January 1, Year 1. The subsidiary commences operations on that date, and generates n

Written inquiries for financial information, Q. Written inquiries for finan...

Q. Written inquiries for financial information? Inquiry - A procedure which comprises seeking information both financial and non-financial, of knowledgeable persons throughout

Receiver necessary statement-bankruptcy, Receiver necessary statement T...

Receiver necessary statement The receiver may, if necessary, require the statement to be submitted by: Past or present officers of the company Persons who have taken

What are the potential benefits of implementing abc, Question 1: (a) De...

Question 1: (a) Define program evaluation. (b) Discuss the four types of program evaluation that are usually carried in the Public Sector. Question 2 (a) You have

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd