A spendthrift trust protects an inheritance from being squandered away by the beneficiary or from being collected by a beneficiary’s creditors. It is a good option if you are keen on securing your assets.
How can spendthrift trust help you?
It is vital to preserve inheritance even after a grantor has passed on. Having a spendthrift trust in Arkansas has multiple benefits, which include (but are not limited to) the following:
- It can maximize the chances of financial security of a beneficiary.
- It can prevent the wasteful spending of a trust fund.
- It can protect a trust fund from risky investments.
This trust fund can protect the family’s future even after you pass. Here is how you can start preparing a spendthrift trust:
Define the duration and terms of the trust
Beneficiaries receive a spendthrift trust in installments instead of all at once. This way, the beneficiary can spend the trust more safely. You can define the duration and terms of the trust, be it monthly, quarterly or annually. You can also distribute the trust for the beneficiary’s lifetime or within a certain period.
Get clear on the fine print of the trust
In case the circumstances of the beneficiary change, you can further define specific clauses as you deem fit. This is thinking far ahead regarding securing the beneficiary’s financial future. For instance, the fine print can specify what you want to happen when an emergency case happens to the beneficiary, and they may need to get a lump sum of the spendthrift trust.
Seek an experienced estate planning lawyer
Getting help from an experienced estate planning lawyer will help you in the abovementioned endeavors. They can provide proper guidance in setting up the nitty-gritty details of a spendthrift trust and appointing a credible trustee.
A spendthrift trust can be a valuable tool for preserving an inheritance. With the proper legal guidance, you can make the trust flexible for your beneficiary’s welfare.