What is a spendthrift trust?

A spendthrift trust is a legal arrangement in Delaware that offers asset protection for beneficiaries of the trust. It is an agreement in which a person, known as the grantor, creates a trust to provide financial support for another, known as the beneficiary. The grantor transfers assets to the trust, and the beneficiary is entitled to receive income generated by those assets. The trust is managed by a trustee, who is appointed by the grantor. The trustee is responsible for managing the trust and ensuring that the beneficiary receives their proper disbursements from the trust. The main benefit of a spendthrift trust is that the assets in the trust are protected from the beneficiary’s creditors. This means that creditors are not allowed to take assets from the trust to satisfy their debts to the beneficiary. Another benefit is that the beneficiary will not be able to access the trust assets directly. Instead, the trustee must approve any disbursements to the beneficiary. This can help prevent the beneficiary from making unwise decisions with their money. A spendthrift trust is an important form of elder law in Delaware. Because it helps to protect assets from creditors and helps to ensure that financial support is provided to the beneficiary, it is an ideal way for seniors to ensure their money is used appropriately.

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What is a spendthrift trust?

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