A spendthrift trust is a type of trust that is designed to protect the assets of someone who may be unable to manage their own finances, such as someone who is irresponsible with money or has a spending addiction. The trust is set up so that the assets are managed by a trustee, who has the discretion to use the assets to provide for the needs of the beneficiary. The beneficiary usually does not have the right to take possession of the assets outright, and the trustee is responsible for making sure that the assets are used in the best interests of the beneficiary.
The trustee is typically given a wide range of powers to manage the trust assets, such as the ability to invest the assets, make distributions for the beneficiary's support, and even to make payments to third parties on behalf of the beneficiary. The trustee has a fiduciary duty to manage the trust assets for the benefit of the beneficiary and to act in the best interest of the beneficiary.
Spendthrift trusts can be useful in protecting the assets of someone who has difficulty managing their own finances, but it also limits the beneficiary's control over the assets in the trust. Give me a call and I can help you determine if a spendthrift trust is an appropriate option for your situation.
**None of the information provided here is intended as legal advice and no attorney-client relationship is formed between us until we have a formal written and signed agreement.**
