What is a spendthrift trust?

A spendthrift trust is a type of trust that is designed to protect the beneficiary’s assets from being used or given away without their knowledge or approval. In New Mexico, a spendthrift trust can be set up so the beneficiary cannot sell, transfer, or spend any trust assets without court approval. This type of trust is often used for minors, people with disabilities, or anyone who may not be able to make responsible decisions regarding money. The trust document will typically define who is allowed to access the trust assets, and how the money should be used. The trust document may include restrictions on how the assets can be spent. For instance, these restrictions may prohibit the transfer of money to another person, the payment of debts, or the use of the funds for anything the beneficiary wants. The trust document also describes how to manage the assets in the trust and who will be responsible for making decisions. The trustee, usually a family member or a trusted friend, is usually responsible for overseeing the trust and making decisions that are in the best interests of the beneficiary. This type of trust can provide added protection and peace of mind, knowing that the beneficiary’s assets are safe and being managed responsibly.

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What is a spendthrift trust?

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