A spendthrift trust is an irrevocable trust that allows a beneficiary to inherit money without the power to decide how the money can be used. This particular type of trust is especially popular among aging parents who have worked hard to build their estate, but realize that their children or other heirs may not have the responsibility to manage the inheritance in a responsible manner. A spendthrift trust gives authority to an independent trustee to make all decisions as to how and when the trust funds can be used for the benefit of the recipient.
Advantages of a Spendthrift Trust
- One of the most obvious advantages to creating a spendthrift trust is that your beneficiaries will be cared for and provided for even if you do not agree with their spending habits. In many situations, wealthy people may feel their heirs are too young to make wise decisions with large amounts of money. With the proper legal wording, you can stipulate certain ages your heirs can have access to all or part of the money.
- In addition to having the peace of mind that their hard work will not be wasted after they die, they can also find comfort in knowing that creditors will never have access to the trust fund as the trust is not in the beneficiary’s control, but in the independent trustee’s control.
- With this type of trust, you have the ultimate control of what happens to your estate after you die. Without the proper legal trusts, your assets will have to go through probate and will be distributed by a judge who knows nothing of your wishes.
Trusts and Probate Attorney in Oklahoma City
Robert R. Robles has worked with many Oklahoma City residents to ensure their estates are fully protected for the present and the future. Call our firm today to give you the peace of mind that your assets and estate will go to the people you desire, when you feel they are ready to make wise decisions.