Let us help you decide if a spendthrift trust is right for you
A spendthrift trust refers to the type of trust you can create when you want to leave an inheritance. However, it’s ideal for a person you aren’t 100% confident won’t mismanage the estate. A spendthrift trust provides vital protection for assets and ensures that your hard-earned estate is not lost. Millman Law Group knows the ins and out of trust laws. We can determine if you need a trust at all, what type you might need and help you understand the formalities of creating a legally valid trust. Here are four signs that a spendthrift trust should be a part of your estate plan.
A Spendthrift Trust is Necessary When You Want to Leave Money for Someone, but You Know They Have a Spending Habit
When you hand a large inheritance to someone who mismanages money, this can be problematic. It could lead to money going down the drain expeditiously. A spendthrift trust provides access to funds intermittently so that there isn’t any irresponsible spending. For example, let’s say that you want this heir or beneficiary to receive $50,000 of your estate. This amount of money over this person’s lifetime could come monthly, quarterly, or however, you see fit.
If Your Potential Heir or Beneficiary is in Debt
When the person who inherits part of your estate from a trust fund is in debt, their inheritance can be susceptible to creditors. You can prevent this from happening with a spendthrift trust.
If Your Loved One is Privy to Falling for Scams
Is your loved one known for making or accepting faulty business deals? Do you feel as if they fall victim to scams and waste the funds? This type of trust fund can prevent them from losing all of the funds.
If You’d Like to Take Care of a Loved One Who Has an Addiction
An addiction of any kind can cause out-of-control spending, whether that be a gambling addiction or otherwise. However, it’s understandable to be empathetic and want to help a loved one who’s battling an addiction. You can limit losses by limiting access to an inheritance so that your loved one won’t spend the money quickly to feed an addiction. We’d also like to express that spendthrift trusts are not only for adults with questionable spending habits. This type of trust could be suitable for a young adult who would love to go on constant shopping sprees or squander money.
If you’re ready to discuss the many estate planning options you have, it’s best to seek counsel from an experienced elder law firm.
YOU CAN “TRUST” MILLMAN LAW GROUP TO ADMINISTER YOUR TRUSTS
Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.