What is a self-settled trust?

A self-settled trust is a trust created by an individual, often the beneficiary, that allows them to move assets to a trust, while still retaining control of them. This type of trust can be utilized in District of Columbia disability planning law to provide supplemental financial security and protection of assets while still allowing the beneficiary to maintain control. In this type of trust, the beneficiary is the settlor (or grantor) of the trust, and also the sole beneficiary. The settlor grants him/herself the power to select the trustee, which is usually a bank or trust company. The assets placed in the trust can be used for the benefit of the settlor, such as paying for medical expenses or any other expenses as designated by the settlor. The main advantage of a self-settled trust is that it allows the settlor to maintain control of their assets while still taking advantage of the legal benefits of forming a trust. Since the settlor is both the settlor and the beneficiary, they can decide how to use the assets of the trust. This type of trust is also exempt from creditors, which can provide protection for the assets. In the District of Columbia, self-settled trusts can be a useful tool for individuals with disabilities to ensure that their assets will be used for their benefit and protected from creditors. These trusts can provide financial security and protection for the beneficiary while allowing them to maintain control of their assets.

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