What to consider when creating a ‘spendthrift’ trust
June 24, 2019
Sometimes you have to hold the reins tight, especially when it comes to money. A spendthrift trust does exactly that.
“This protects people from themselves. Say someone has a drug, alcohol or gambling problem, or someone … is married to a wild spender,” says Eric Kramer, a partner in the trusts and estates practice at Farrell Fritz in Uniondale.
A spendthrift trust (or asset protection trust) gives an independent trustee full authority to make decisions as to how to spend the funds in the trust. The beneficiary might receive trust benefits as regular payments or need to ask permission from the trustee to access funds at certain times.
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