From our “Ask a Question” Mailbag: Gloucester County Spendthrift Trust
Most Recently Updated July 19, 2018.
I was told that I should make the Irrevocable Trusts I am setting up for my children “Spendthrift” Trusts. What does that mean, and what is the advantage of a Spendthrift Trust?
Peter Klenk, Estate Planning Attorney – Gloucester County Spendthrift Trust
Gloucester County Spendthrift Trust
A Spendthrift Trust refers to an Irrevocable Trust created for a beneficiary that does not give the beneficiary the right to assign his or her interest in the trust to a third person, so that the trust assets are not subject to the beneficiary’s liabilities or creditor claims. This way a trust for a child can be used to support the child, but will not be dragged into the child’s creditors claims, bankruptcy or divorce. This can be a huge advantage to your child, as we could draft a trust that would keep the assets safe to support your child should they ever fall on hard times.
More Planning Questions?
The spendthrift trust is only a piece of the Estate Planning process. By all means, if you want to learn more, please read my more detailed article, Estate Planning Everything You Need to Know.
In Conclusion: Gloucester County Spendthrift Trust
I hope that this article was helpful in explaining a spendthrift trust. Further, I included links to even more detailed information on my website so you can learn more. Therefore, please contact me and let me know how I did. Certainly, your comments and questions are welcome!
Let our Estate Planning lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced estate planning lawyers. By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to make the process as painless as possible!
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