Spendthrift Trusts Explained

What are spendthrift trusts? It’s pretty simple, really. A spendthrift trust has language directing the trustee not to honor attempts by the beneficiary’s creditors to reach the trust assets. It also prohibits the beneficiary from encumbering the trust’s assets on their own. More significant, though, is what benefits accrue as a result of the status of spendthrift trusts. The value of adding spendthrift language to a draft trust is to give the beneficiary at least some measure of creditor protection AND the donor some peace of mind. Join us as we talk about spendthrift trusts, what kinds of trusts qualify for the designation, and why you probably want any trust you create to include similar language. Also, we talk about why you can’t just create a trust for yourself and give yourself spendthrift protection. At least not in Arizona.