What Is a Spendthrift Trust?
You may want to take care of your children in your will but suspect that they would blow through their inheritance in just a few years. That’s when a spendthrift trust comes in handy. Also called a spendthrift provision, this type of trust has restrictions that protect heirs from both themselves and potential creditors.
What Is a Spendthrift Trust?
A spendthrift trust allows you to leave funds to a beneficiary without giving full control over those funds. Instead, an independent trustee is given the authority to distribute funds for the benefit of a beneficiary.
Rodney Brooks
Hello! I’m Rodney A. Brooks®. I am a veteran journalist, writer and author and my specialty is retirement planning and other personal finance issues. I have written for many national publications, including USA TODAY, The Washington Post, U.S. News & World Report, AARP and National Geographic. I am available to speak on personal finance, financial literacy and the racial wealth gap.
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