Ask your attorney.
That is the advice rendered foremost by a national business columnist in a recent media spotlighting of the flexibility and great effectiveness that an appropriately selected trust can bring to a financial portfolio.
Proven estate planners certainly agree with that recommendation. We endorse it at the law firm of Robertson, Oswalt, Nony & Associates in Little Rock.
Our attorneys routinely advise diverse clients on estate administration matters, and know from long experience that a trust can optimally promote an individual’s or family’s best interests. We note in a recent blog post (please our February 24 entry) that trusts “can often work together with wills to advance a seamless and tightly effective estate outcome.
The above-cited writer, Liz Weston, was recently asked to comment on spendthrift trusts, which have a quite specific focus. Weston’s article notes their core applicability for relatively well-heeled families featuring adult children “who did not inherit the saving gene” from their parents.
The latter’s concern: that wealth passed down in one pass and in its entirety to the offspring will be quickly dissipated.
A carefully crafted spendthrift trust can guard against that downside. Its creator (or creators, if mom and dad are establishing the trust) can put assets into a trust vehicle that is legally the beneficiary for all deposited wealth. A designated trustee disburses wealth to individuals that the trust creators name as trust beneficiaries.
What makes a spendthrift special is the complete control it gives the trustee (again, operating under instructions from the parties who created the trust) to distribute assets. The trust can be structured to eliminate any possibility of the beneficiaries tapping into trust principal. And, importantly, creditors cannot touch trust monies, either.
The bottom line with a spendthrift trust is that it can be a most impressive planning tool when applicable. An established estate administration attorney can provide relevant information.