What is a Spendthrift Trust and how does it work?

A Spendthrift trust is an estate planning tool used by individuals in Washington to protect their assets. It makes it difficult for creditors to access the assets, and ensures that the funds are used for the intended purpose. A Spendthrift trust is created when an individual, the trustee, sets up a trust fund with the help of a qualified estate planner. The trustee is then responsible for managing the funds in the trust. The trustee must invest the funds in accordance with the trust document and make distributions in accordance with the terms of the trust. The trust document will usually set out how and when the funds can be distributed. The Spendthrift trust is designed to protect the assets from creditors, which means creditors cannot attach or seize the assets in the trust, no matter how much money the trust contains. Another benefit of the Spendthrift trust is that it allows the trustee to be creative in their management of the funds. This can include setting up funds to be used for a specific purpose, such as a college education or a vacation, and setting out how those funds can be accessed and used. Overall, the Spendthrift trust offers a unique estate planning tool which can be used to protect assets and ensure that they are used for the intended purpose. It is important to seek the advice of a qualified estate planner when setting up a Spendthrift trust, as they can help ensure that the trust is legally established and managed properly.

Related FAQs

Who should be included in an estate plan?
What is an estate inventory and why should I create one?
What is an estate distribution plan and how does it work?
What tools are available to help me plan my estate?
What is a guardianship and why should I consider it?
How can I ensure that my pet is taken care of after my death?
What is a charitable lead trust and how does it work?
How can I protect my family's inheritance from creditors?
How do I set up an estate plan?
How do I transfer a business after I die?

What is a Spendthrift Trust and how does it work?

Related FAQs

Related Blog Posts