Planning your estate for the future can be highly beneficial for you and your family. While many people forgo the opportunity to secure their families down the line, the benefits of estate planning cannot be measured with simple numbers. A properly planned estate can run like a well-oiled machine, long after you pass away. One way to secure your family’s wellbeing is to create a trust.
Trusts are invaluable when it comes to making asset distribution and asset protection a priority for the future. One type of trust is a spendthrift trust. A spendthrift trust is an irrevocable living trust with a spendthrift stipulation. This can maximize the assets in a trust and allow for more flexibility amongst your beneficiaries. An experienced estate planning attorney can help you decide if a spendthrift trust is beneficial for you and help you put one together.
How Does a Spendthrift Trust Work?
A spendthrift trust is overseen by a trustee, much like any other trust. In a spendthrift trust, the trustee is responsible for distributing the allotted amount of assets to any given beneficiary. Typically, a grantor sets the amount certain beneficiaries receive but there are instances where a trustee must set the limit in accordance with what is best for the trust itself. A spendthrift trust is usually put into place to prevent a beneficiary or multiple beneficiaries from receiving an inheritance all at once. A spendthrift trust may not be necessary for every estate but it is a valuable tool with many benefits. An estate planning lawyer can aid you in understanding all the benefits a spendthrift trust can provide.
How Can a Spendthrift Trust Be Beneficial?
Spendthrift trusts are highly beneficial when the beneficiaries aren’t mature enough to handle an inheritance in its entirety. Imagine having a large inheritance go to a nineteen-year-old with no real experience in handling finances. It can result in misuse of funds and cause issues for the beneficiary or estate. Likewise, a spendthrift trust can aid in the proper use of funds if a beneficiary has drug, alcohol, or gambling problems.
Protecting the assets in a trust is the number one benefit of having a spendthrift trust. As long as the trustee distributes the assets as needed, a spendthrift trust can help protect the trust and beneficiaries for the long run.
Can an Attorney Help Me Set Up a Spendthrift Trust?
A spendthrift trust can save your family a lot of headaches in the future. Similarly, the estate planning lawyers at Israel & Gerity, PLLC can save you the headaches that come with trying to figure out the best trust for your estate. Call Israel & Gerity, PLLC at 602-274-4400 for a free consultation to get your trust started today.