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Spendthrift Trust Attorney in Los Angeles

Options for Protecting Your Beneficiaries

While you have full control and access to all your trust assets during your life, on your death, your beneficiaries do not have such access and control over their inheritance. Placing spendthrift and asset protection provisions in your trust protects your beneficiaries from their own creditors. Such trusts can be set up for the lifetime benefit of the beneficiary and upon the beneficiary’s death, can be set to distribute to others. The trustee exercises full discretion as to when, how, and how much the beneficiary is to receive.

If you are interested in protecting your beneficiaries or would like to learn more about spendthrift trusts, we encourage you to reach out to our firm as soon as possible. Our Los Angeles spendthrift trust attorney has more than 15 years of experience and is well-versed in all aspects of estate planning.

Contact the Law Offices of Maria N. Jonsson, PC online or by phone at (310) 935-0706 for a free consultation.

How Spendthrift Trusts Work

A spendthrift trust is somewhat different than other types of trusts in that an independent trustee is granted authority on how and when to grant benefits to the beneficiary, as well as the amount(s) the beneficiary will receive. Trusts are only treated as spendthrift trusts if they include a spendthrift provision or clause designating them so. With these types of trusts, beneficiaries are not actually in control of the trust once the grantor (or creator) of the trust dies. Likewise, the beneficiary’s creditors cannot access any funds held within the trust.

These types of trusts are typically used to protect beneficiaries that may not be able to control their spending or who have substantial debts or financial liabilities. This can be an incredibly useful tool for people who do not wish to disinherit certain heirs but also want to make sure that their inheritance is not squandered. It is also useful in the event that you are concerned that your beneficiary’s creditors may attempt to access the trust funds. It is important to note, however, that once assets or funds have been distributed by the trustee to the beneficiary, they are no longer protected from the beneficiary’s creditors; only assets/funds held within the trust are protected.

Discuss Your Situation with Our Legal Team

If you are interested in establishing a spendthrift trust, the Law Offices of Maria N. Jonsson, PC can help. For more than 15 years, our estate planning attorney has helped clients throughout Marina del Rey, Venice, and the nearby areas create solid estate plans tailored to their needs. Our firm can help you navigate your options in regards to your unique family dynamic and determine the best course of action for you and your loved ones.

Get in touch with our team today; call our office at (310) 935-0706 or submit an online contact form.

  • We Work as Part of
    a Larger Team

    We work with out client’s financial planner, CPA, realtor & insurance broker to implement a well-rounded and thorough legal plan for wealth preservation & inheritance transfer.

  • Strategic Planning &
    Attention to Detail

    We carefully look at each factor that affects the execution of an estate plan – from the perspective of minimizing and eliminating reassessment of property taxes to avoiding post-death conflicts.

  • Mediator by Training & Peacemaker by Heart

    We believe that an estate plan should leave behind not only property, but most importantly – harmony, rather than tear families apart with poorly drafted or ambiguous and confusing term