A TRUST WITH RESTRICTIONS
When the person creating a trust has concerns about the spending habits of a beneficiary of that trust, a “spendthrift trust” may be created that provides an independent trustee with full authority to make decisions about how the trust’s funds may be spent. The terms of the trust, which can be wide-ranging in possibilities, place the trustee in control of the trust property and of any benefit the beneficiary receives. The grantor must consider how much control to give to the trustee and describe the trustee’s power in detail. The grantor must also decide how and when the trust will end, the status of the trust principal, if the beneficiary’s circumstances change, and if special payouts are to be allowed.
The process of establishing a spendthrift trust fund is identical to creating any other trust fund except the trust instrument must contain a spendthrift provision. Before you plan or administer an estate, you want to sit down with a lawyer, one who will really listen to your concerns. To learn more, please call me today for a free initial consultation. My office emphasizes wills, estates/probate, personal injury, worker’s compensation, criminal law/DUI, foreclosures, and business law. Trusted and verified.
HINT: A spendthrift trust is useful when a grantor wishes to leave property or money to a beneficiary who has an addiction, is easily deceived or defrauded, or might easily fall into debt with creditors.