Article 30 – Protective Trusts

(1) The Terms of the Trust may make the interest of the Beneficiary liable to termination.
(2) Without prejudice to the generality of Article 30(1), the Terms of the Trust may make the interest of a Beneficiary in the Income or capital of the Trust Property subject to:
(A) a restriction on alienation or disposal in whole or in part; or
(B) a diminution or termination in the event of the Beneficiary becoming bankrupt or any of its Property becoming liable to sequestration for the benefit of its creditors.
(3) A Trust under which the interest of a Beneficiary is subject to restriction, diminution or termination under Article 30(2) is a Protective Trust.
(4) A provision in the Terms of the Trust requiring the interest of a Beneficiary in the Trust Property to be held upon a Protective Trust must be construed as a requirement that the interest of the Beneficiary be subject to restriction, diminution or termination as mentioned in Article 30(2).
Amended (as from 24th December 2017).