With trusts, there are many different options that are available and it is pivotal for those thinking about setting up a trust to find the path forward that they know will be most compatible with their unique circumstances. For example, you may be considering a spendthrift trust for various reasons. If so, it is pivotal to carefully review the ins and outs of this option and ensure that you make decisions which will protect your estate.
The Massachusetts Legislature states that spendthrift provisions restrain the involuntary and voluntary transfer of beneficiaries’ interests. Some people may wonder why a trustor would decide to leave a beneficiary with property only to restrict that person from spending funds from the trust. However, there are various situations in which this may be necessary. For example, if a beneficiary has a problem with gambling and cannot control his or her money, spendthrift provisions may help prevent the beneficiary from making decisions that they will regret later on.
Spendthrift trusts may also carry other benefits, such as protecting beneficiaries from creditors. If you have decided that this route is appropriate, you will have to name a trustee to oversee the trust. Sometimes, making the decision to move forward with this plan can be challenging, which is why it is vital to carefully go over the details surrounding your trust and those who will inherit your property.
It is important to point out that no part of this blog post was written to stand in the place of legal counsel.