Protecting your assets and, in the process, your family can be crucial to the longevity of your estate. Trusts are often used to safeguard assets but in particular, a spendthrift trust is often utilized to not only protect assets from outside liabilities such as creditors and lawsuits but they are also used to protect assets from the inside. Knowing that your money will eventually be inherited by your family can be a peaceful thought but what if one of your beneficiaries is reckless with money? You may not want your assets to go to waste immediately on things your beneficiaries don’t need. That is where a spendthrift can assist you and your family. Reach out to an asset protection lawyer to find out more about spendthrift trusts and how we can help you set one up.
Why Should I Create a Spendthrift Trust?
Asset protection is the name of the game when it comes to spendthrift trusts. Let’s say one of your beneficiaries is young and you don’t want to leave them a lump sum inheritance after you pass away. Creating a spendthrift trust with a spendthrift provision that states the amount of money they should receive from the trust can help your beneficiary slowly but surely financially. Your successor trustee would be responsible for distributing the assets within the spendthrift trust according to the provision you have set. This means that if you stated your beneficiary should only receive a certain amount of money per month, the trustee must honor that provision.
Why are Spendthrift Trusts Often Used in an Estate Plan?
Spendthrift trusts are often used in estate planning due to their all-encompassing asset protection qualities. Aside from protecting your beneficiaries with a spendthrift provision, if your beneficiaries end up in legal trouble or in serious credit card debt, litigators and creditors alike will not be able to touch their inheritance money because it technically doesn’t belong to them. This protection can be crucial to the well-being of your family in the future.
Is Hiring a Spendthrift Trust Attorney Right for Me?
A spendthrift trust is an effective way to secure the financial future of your family and protect your assets in the interim. With the flexibility of a spendthrift trust, your family can reap the benefits and build stable financial habits that can help them be successful down the road. Hiring a spendthrift trust attorney to help you put together a trust that is right for you can make your life easier and can reassure you that your trust is good to go. Call Thomas-Walters, PLLC at (919) 424-8277 to schedule a free consultation today.