What is PROTECTIVE TRUST?

A trust created that will protect the assets of the trustor in their lifetime from the effect of the trustor declaring bankruptcy. The trustee is responsible for any interest earned by the trust being given to the trustor at this time.

More On This Topic



Link to This Definition
Did you find this definition of PROTECTIVE TRUST helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary