Section 11E
Spendthrift or protective trust
of Labuan Offshores Trusts Act 1996
(a)
liable to termination;
(b)
subject to a restriction on alienation or disposal; or
(c)
subject to diminution or termination in the event of the beneficiary becoming insolvent or any of his property becoming liable to seizure or to sequestration for the benefit of his creditors.
(2)
A trust under which the interest of a beneficiary is subject to termination, restriction or diminution under subsection (1) is a spendthrift or protective trust.
Labuan Trusts 27
(3)
A provision in the terms of a trust requiring the interest of a beneficiary in the trust property or in any income or capital of such property to be held upon a spendthrift or protective trust shall be construed as a requirement that the interest of the beneficiary be subjected to termination, restriction or diminution as mentioned in subsection (1).