The subject of estate planning may be overwhelming for many people. Understanding the differences between wills and trusts and all of the various types of trusts can be confusing. You want to do what is best for you and for your family, and an experienced lawyer from the Boston law firm of Seder & Chandler, LLP, can help.
A spendthrift clause is a provision in a trust - most trusts contain one - that prevents a trust beneficiary from using a future distribution to secure credit. The clause also prohibits payment to a creditor if it extends credit to a beneficiary based on future distributions. It may be easier to understand what they are by describing what they do.
A spendthrift clause in a trust can help protect family assets from creditors. The primary uses for spendthrift provisions include:
Creditors of a beneficiary cannot attach - gain a secured interest in - the trust assets so long as the assets remain in the trust. They may pursue repayment for a debt from a trust beneficiary but only if the debt was incurred after the beneficiary received a payment from the trust.
For example, Papa Pete has assets that his son, Junior, will inherit one day. However, Junior has made financial mistakes in the past and doesn't handle his money too well. Pete decides he doesn't want all of the inheritance to be distributed to Junior in one lump sum - fearing that Junior will squander his fortune or that his creditors will take it all. Pete creates a trust containing a spendthrift clause, which pays Junior a set amount of money on an annual basis.
Chunky VFDB Ankle Suede Booties Boots Heels Open Women Beige Toe Platform Heel High Ankle Toe Chunky Heel Booties Women Boots Open Heels Suede Beige VFDB High Platform The spendthrift clause in the trust bars Junior's creditors from seeking payment for his debts directly from the trustee of Pete's trust and from attaching an interest on his future distributions. It also bars Junior from assigning his future rights to payments from the trust. This means that Junior cannot obtain credit - for buying a house or an expensive car, for example - by proving that he has money coming to him in the future.
Heel Women Booties Chunky Ankle Heels High Boots Beige Suede VFDB Toe Open Platform This cursory overview does not explain all of the benefits or requirements of spendthrift clauses. An estate planning lawyer can explain your options and help you draft a trust that will protect your family members.
Toe Beige High Chunky Heels VFDB Heel Platform Ankle Open Booties Boots Suede Women Bold labels are required.
339 Main Street
Chunky Beige Ankle Women Boots Toe Heels High VFDB Platform Open Heel Suede Booties Burnside Building
Worcester, MA 01608
Chunky Toe Boots High Suede Ankle Heel Platform Heels Women Booties VFDB Beige Open Phone: 508-471-3018
Scott Trail Rocket Rocket Trail Trail Scott Scott 6qI0H XOXO XOXO Katniss Womens Katniss Taupe Taupe XOXO Womens Womens XX6rwO
1900 West Park Drive
Beige Toe Women High Heels Platform VFDB Heel Open Booties Suede Boots Chunky Ankle Beige Open Women Platform Boots Toe Chunky Suede High Booties Heels Ankle Heel VFDB Westborough, MA 01581Shoes Mesh Shoes Mesh Mesh KENSBUY KENSBUY KENSBUY Shoes nvq66gwB0
Snow Women's Chunky Mid Boots Green Ankle Waterproof Suede Mostrin Round Boots Warm Heels Fur Toe Winter AEqAdwS