Most people are motivated to create estate plans so their loved ones are protected in their absence. With that said, giving beneficiaries money and other assets isn’t always the right thing to do. If a beneficiary has poor spending habits, you’ll want someone to oversee how those assets are used. An estate planing attorney in Topeka, KS, will show you how spendthrift trusts help you keep assets under control.
Spendthrifts: What Are They?
someone handles money poorly, they’re said to be a spendthrift.
Such tendencies often arise due to addiction, mental illness, or bad
influences from others. In any case, handing a spendthrift a
substantial inheritance can cause great concern. Thankfully, a trust
its core, a trust is an arrangement where property is held by a party
for another person’s benefit. A trust’s provisions and terms are
outlined in a document known as a trust agreement. While a living
trust is created during a person’s lifetime, a testamentary trust
only goes into effect after their passing.
How Spendthrift Trusts Help
significant advantage of using trusts to distribute inheritances is
the retained control over how those funds are used. Spendthrift
trusts prevent beneficiaries from wasting their inheritances, but the
language used must be very specific. When drafted by a skilled estate
planing attorney in Topeka, KS, a spendthrift clause prevents
beneficiaries from borrowing against, encumbering, or squandering
state’s laws govern most parts of these agreements, including a
spendthrift clause’s validity. The protections of such a trust have
limits. For instance, funds may be subject to garnishment for child
or spousal support payments.
A spendthrift trust can help you protect your beneficiaries and their inheritances. Call the Debenham Law Office LLC or visit debenhamlaw.com to schedule a consultation.
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