When you leave money or assets to your heirs after your death, you want to make sure they get the most out of this legacy. If you are concerned about your beneficiary’s ability to manage their money correctly, a spendthrift trust may be beneficial. Spendthrift trusts in Lake Worth, FL, are designed to keep your heirs from squandering their inheritance, help them live well, and appreciate what they have.
If you want to set up a spendthrift trust, contact The Millman Law Group’s estate planning attorneys. The Millman Law Group, founded by Aaron D. Millman, Esq., CPA, is committed to providing our Florida community with skilled and thoughtful estate planning services. Contact us today to find out more about the benefits of spendthrift trusts.
What Is a Spendthrift Trust in an Estate Plan?
Spendthrift trusts are irrevocable trusts established while the originator (grantor) of the trust is still alive. A spendthrift trust can also be created within a revocable trust and takes effect upon the death of the grantor. The spendthrift clause defines a trust as a spendthrift trust. According to the clause, the beneficiary receives their cash or assets in installments rather than all at once. The grantor determines the amount of money supplied and when it is distributed to the receiver.
When Is It Best to Use a Spendthrift Trust in Lake Worth?
Individuals establish spendthrift trusts in Lake Worth for various reasons, the most prevalent of which are creditor protection and imprudent spending.
Keep Beneficiaries Safe From Poor Money Management
Use a spendthrift trust to protect your successor from themselves. Because the trust regulates how much money is delivered and when it is distributed, the heir receives their inheritance as a stream of income rather than a flat sum.
Protect Heirs from Creditors
Creditors cannot collect on the trust’s assets since the beneficiary does not own them. As a result, the spendthrift trust might be beneficial in handing an inheritance to a debtor. Because the trust cannot be used as collateral to incur new debt, it adds another safeguard to keep successors from making poor financial decisions.
Trust Your Millman Law Group Estate Planning Lawyer When Creating Spendthrift Trusts
Your Millman Law Group attorney in Lake Worth can assist you in establishing a spendthrift trust that meets your needs. This trust benefits from a full legal analysis due to its nature. This is because trusts must survive attempts to assume control by beneficiaries and creditors to reclaim assets.
Consult a lawyer to verify that the clause will hold up to any legal challenges. Call your Millman Law Group attorney now to discuss your concerns about maintaining and protecting your assets in Lake Worth, FL, or to schedule a free first consultation with one of our experts.
Contact The Millman Law Group To Create Spendthrift Trusts in Lake Worth
Millman Law Group, PLLC is one of the only law firms that offers 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 specializes in special needs trusts and catering to any age demographic because we know that it’s never too early to start preparing for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, LinkedIn, and Pinterest. You can also contact us at 561-463-6480.