What is a Spendthrift Trust and how does it work?

A Spendthrift Trust is a form of estate planning created in California to protect assets, such as money and property, from creditors and other third parties. The money and property that is placed in this type of trust is treated as untouchable. This means that creditors, even if they have a valid claim, cannot access the assets in a Spendthrift Trust. When a Spendthrift Trust is created, a trustee is chosen to manage and oversee the trust. The trustee is often a family member or an attorney, who is responsible for making sure that the terms of the trust are followed. The trustee is also responsible for ensuring the assets in the trust are used for the benefit of the beneficiaries. The trust can be set up in two ways. The first is an irrevocable trust, which means the assets placed in the trust remain under the control of the trustee and cannot be revoked or changed. The second is a revocable trust, which gives the grantor (the person creating the trust) the ability to change or revoke the trust at any time. Spendthrift Trusts are ideal for protecting assets from creditors, preventing unnecessary taxes, and providing a secure way of transferring wealth from one generation to another. It is important to remember that due to the complex nature of estate planning and Spendthrift Trusts, it is always best to consult a qualified estate planning attorney.

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What is a Spendthrift Trust and how does it work?

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