Protective Trust

A type of trust that provides specific provisions, either testamentary or inter vivos (living), whereby the settlor ensures protection of the property for beneficiaries who may be improvident, incompetent or about to be divorced. It should be noted that this form of trust cannot benefit the grantor with immunity from their own creditors. However, a grantor can settle a trust to protect a beneficiary from claims of the beneficiary's creditors and even from claims in a divorce.