3 Advantages of a Spendthrift Trust

A spendthrift trust is a type of estate planning tool that the people use in order to provide assets for their beneficiaries. Here are some of the advantages of using a spendthrift trust.

1. Provide for Beneficiaries 

One of the big advantages of this type of trust is that you can provide for your beneficiaries even if you are worried about them spending the money. In many cases, people leave money to minors that are not necessarily ready to handle a large amount of cash. If you put the money in a spendthrift trust, you can specify when they will receive the money. They may have to meet certain conditions or reach a certain age before getting access to the money.

2. Protect the Assets

When you put money into a spendthrift trust, you will be able to protect it from creditors. Without a trust, your creditors could come after the money and keep it from being available to your beneficiaries.

3. Control

With this type of tool, you can have control over what happens to your assets when you die. If you do not set up a trust, your assets will go through the probate system and it will be up to a judge.