If you are in the middle of creating a trust or are simply beginning to approach the estate planning process, you could have all sorts of questions, some of which may be unique to your situation. For example, you may want to give a portion of your estate to a beneficiary, but you may be worried that the person will not be able to manage the assets properly, for one reason or another. Our law firm knows that in some cases, spendthrift provisions can help trustors who are struggling with this issue in New York City.
Trustors decide to move forward with spendthrift provisions for different reasons. Essentially, these provisions prevent beneficiaries from having full access to a trust's assets without an independent trustee overseeing the trust. If a beneficiary has difficulty controlling his or her spending, whether they have a problem with gambling or spend money irresponsibly for another reason, spendthrift provisions can help ensure that the beneficiary does not misuse proceeds from the trust. Moreover, these provisions can also help protect the assets of a trust from creditors who may attempt to gain access to funds from a beneficiary's trust.
Spendthrift provisions are an excellent example of how trustors can tailor their estate plan to accommodate their unique needs. If you are worried about a beneficiary misusing funds or another estate-related matter, you might be surprised to find a perfect solution. On our probate and estate planning page, you can read more information related to drafting a trust.