Do you have a family member you want to leave an inheritance but know they are terrible at managing their own finances? Consider a spendthrift trust. Rather than receiving their full inheritance at once, the funds you place in a spendthrift trust will be distributed in increments over time depending on your stipulations- you determine the time and amount of each distribution. Like other irrevocable trusts, the distribution of funds will be handled by your designated trustee.

Because your beneficiary will not own their entire inheritance at once, a spendthrift trust is especially good for someone too young, financially immature, easily defrauded, unable to budget, has an addiction problem, or in a relationship with little control over their money. A spendthrift trust can also protect your funds against your beneficiary’s divorce, bankruptcy, lawsuits, and creditors.

How Does A Spendthrift Trust Work?

A spendthrift trust is set up like other trust funds but must include specific spendthrift language. If you are concerned about the way a family member will spend their inheritance, contact Kendal Law Group for your free consultation. Kendal Law Group is experienced with all types of trusts and will help you set up the proper estate plan tailored towards your needs.