A Profound Look At Spendthrift Trust

Have you invested sufficient time and money in building your fortune and now are thinking of passing it on to your heirs? If fortunate, then by this time your kids or preferably grandkids are into well grounded jobs and are leading a secured life. But, what if things take an adverse turn or rather what if you need to secure them financially. Well, if that’s the case, you may want to create a spendthrift trust.

A spendthrift trust is defined as a trust account that is overseen by a trustee to benefit a person (generally because he or she is not able to control their spending). The trustee has complete authorization regarding decision making and disbursement of funds from the trust to the beneficiary. The beneficiary’s creditors are generally unable to touch the trust funds and the beneficiary is not able to draw any funds from the trust on their own. The spendthrift designation in a specific trust requires language that shows that the creator of the trust intended the trust to qualify as a spendthrift trust. This is known as a spendthrift provision or a spendthrift clause.

A well drafted irrevocable trust will contain the spendthrift language even if the beneficiary is not necessarily known to be a spendthrift in order to protect the trust from a creditor judgment or attachment before the interest is actually distributed to him or her.

If you think that this is what you may be interested in creating then you can proceed further and draft a document that contains you desires and wishes relating to this type of trust. Now-a-days you can go online and find a large, reputable Legal Document Services Company like our favorite, LegalZoom. They have questionnaires, education, forms, document preparation and filing capabilities available along with a customer satisfaction guarantee. Save legwork, money and time by using their services.

Tagged with:

Filed under: Living Trusts & Wills

Like this post? Subscribe to my RSS feed and get loads more!