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

Distribution under the intestacy provisions, DISTRIBUTION UNDER THE INTESTA...

DISTRIBUTION UNDER THE INTESTACY PROVISIONS When a person dies without leaving a will, his estate is distributed according to the Law of Succession Act. When a person dies, fou

Responding to various stakeholder groups, Q. Responding to various stakehol...

Q. Responding to various stakeholder groups? If a company has a solitary objective in terms of maximising profitability then it is only responding to one stakeholder group name

What is the amount of liabilities, Craig's Cars has assets of $4,550 and st...

Craig's Cars has assets of $4,550 and stockholders' equity of $3,200. What is the amount of liabilities? What is the amount of claims?

Interest expense, April 2014 Notepayable $9,825,000 was issued. First due i...

April 2014 Notepayable $9,825,000 was issued. First due is April 1,2015. 6% interest erroneously expensed a full year''s interest

Investment tax credit, 1.Assume that Abel business corporation is purchasin...

1.Assume that Abel business corporation is purchasing new equipment, for 350,000$ at the beginning of 2014. Assume that Abel business corporation is in the 30% corporate tax bracke

Archer daniels midland company is considering, Archer Daniels Midland Compa...

Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.00 million. This investm

Inventory ratio, inventory ratio of 4 compared to 7.1

inventory ratio of 4 compared to 7.1

Adjusting Entries, The company incurs a payroll payable of $645 per weekday...

The company incurs a payroll payable of $645 per weekday of operations. The mondays of january are the 3rd, 10th, 17th, 24th, and the 31st. Paydays are every other Friday with payd

Hsa advantages , A HEALTH SAVINGS ACCOUNT AT FRONTLINE PR Susan Berry...

A HEALTH SAVINGS ACCOUNT AT FRONTLINE PR Susan Berry just returned from a national conference on compensation and benefits where she attended a session on Health Savings Accou

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