Spendthrift Trusts in Buckeye

A spendthrift trust is a legal tool you can use to prevent a beneficiary from receiving their inheritance all at once. This might be a particularly pressing concern if your heir is young, struggles with addiction issues, or has substantial debt. It is a way to regulate the financial support allocated to the beneficiary so that it is not lost to overspending.  An experienced estate planning attorney can advise whether a spendthrift trust suits your family situation and estate planning goals.

If you need advice on the right estate planning solutions, contact Pennington Law, PLLC for an initial case evaluation with an asset protection attorney in Buckeye, Arizona. 

What is a Spendthrift Trust?

A spendthrift trust allows the person who makes the trust (called the grantor) to control how their beneficiaries access assets. The terms of the trust are outlined in legal documents directing the distribution of your assets after your death. The trustee can determine when to make distributions from the trust. These trusts limit beneficiaries from squandering assets and protect those assets from a beneficiary’s creditors.

 The Role of an Estate Planning Lawyer in Setting Up Spendthrift Trusts

An estate planning lawyer in Buckeye can help you incorporate spendthrift trusts into your estate plan. An Arizona trust administration attorney from Pennington Law, PLLC can help you select trustees and establish rules to govern the trust, including when beneficiaries can receive distributions or guidelines for trustees to follow when deciding to issue distributions. Our firm can also help you review the terms of your spendthrift trusts and update trust documents as necessary to address changes in family circumstances, estate planning goals, or relevant laws.

How Do Spendthrift Trusts Protect Assets?

A spendthrift trust protects assets through the spendthrift clause within the trust document. This clause prohibits trust beneficiaries from satisfying debts with their interests in the trust assets. Thus, a beneficiary’s creditors cannot file claims against the beneficiary’s interests.

Spendthrift trusts give trustees the authority to distribute trust income and assets to beneficiaries. The trust document may dictate a schedule of distributions or give the trustee discretion when to make distributions. While this setup can be frustrating for beneficiaries, it can work in their best interests and provide them with properly managed funds for the long term.

A grantor typically establishes spendthrift trusts to protect loved ones’ inheritances from poor financial decisions or other circumstances. A spendthrift trust can be an excellent way to protect beneficiaries who are: 

  • Children or young adults
  • In substantial personal debt
  • Known to make poor financial decisions
  • Dealing with alcohol, drug, or gambling addictions
  • In professions that may expose them to personal liability, such as physicians or lawyers
  • In marriages headed for divorce
  • Unable to manage money due to disability or impairment
  • At risk of falling prey to scammers

Integrating Spendthrift Trusts with Other Estate Planning Tools

Individuals can use spendthrift trusts as part of a larger estate plan to protect and preserve family wealth. For example, you may structure your will to pour over a loved one’s inheritance into a spendthrift trust rather than giving it directly to the person. Families may also use spendthrift trusts for loved ones with disabilities or special needs in connection with other estate planning tools like powers of attorney or healthcare proxies.

Keep in mind that spendthrift trusts are just one tool that may be included in a holistic estate plan. Our estate planning attorneys will get to know you so we can develop a comprehensive estate plan to protect your wealth through tools such as wills, trusts, powers of attorney, and beneficiary designations. 

Choosing the Right Spendthrift Trust Lawyer in Buckeye, Arizona

Here are important criteria you should consider when hiring an estate planning lawyer in Buckeye: 

  • Experience – How many years has the attorney practiced law, and have they worked with clients with similar needs?
  • The lawyer’s primary practice areas – Does the attorney’s practice primarily focus on estate planning and asset protection? A general practice where lawyers handle a wide range of cases may not provide the level of service you are looking for.
  • Trust – Do you feel confident that the attorney will handle your case professionally and with compassion? Discussing end-of-life matters, financial planning, and how to protect vulnerable family members can be emotional. You want a spendthrift trust lawyer you can trust.

Hiring a local estate planning lawyer in Buckeye will ensure you have an advisor knowledgeable with applicable laws governing trusts, estates, asset protection, probate, and tax law, helping you build a plan that works to meet your goals and provides for your loved ones.   

Why Choose Pennington Law, PLLC?

Setting up a spendthrift trust requires attention to detail and thoughtful consideration of your family’s situation. Families trust the legal team at Pennington Law, PLLC to manage their estate planning needs because: 

  • We have many years of estate planning experience, advising clients from a wide range of circumstances and backgrounds.
  • We take the time to identify tailored solutions to meet every client’s unique life circumstances.
  • Our attorneys understand the emotional aspects of estate planning and approach the process with sensitivity to help our clients make the best decisions for their families.
  • Our wealth management and growth practice helps clients build and secure their families’ wealth through asset protection and long-term planning.

Contact a Spendthrift Trust Lawyer in Buckeye Today

Are you wondering whether a spendthrift trust is the best way to protect a beneficiary’s inheritance? Contact Pennington Law, PLLC today for a confidential consultation with an Arizona asset protection attorney. 

Our estate planning lawyers are renowned for excellence and have been featured in Super Lawyers Magazine, USA Today, and The New York Times. Call today to put that experience to work for you.