Protect Your Wealth With a Spendthrift Trust in Florida
When it comes to protecting your wealth, a spendthrift trust may be the perfect solution. Spendthrift trusts are named after the principle that if an heir is bequeathed too much money, they may mishandle it and quickly lose it all.
If you are worried about your loved ones wasting their inheritance, consider setting up a spendthrift trust. A spendthrift trust is a type of trust that allows you to control how your money is spent, even after you pass away.
Spendthrift trusts can help protect your assets by setting up guidelines for how the trust’s funds can be used. These guidelines may include restrictions on how much of the trust’s money can be spent each year and on which investments the trust’s funds can be invested. This can help ensure that your loved ones don’t squander your hard-earned money.
Generally, this type of trust is important because:
- A spendthrift trust can provide immediate benefits to the trust beneficiary (or beneficiaries);
- A spendthrift trust can help ensure that money is available for the trust beneficiary’s future needs;
- A spendthrift trust can help protect the trust beneficiary from unforeseen financial challenges;
- A spendthrift trust can provide peace of mind for the trust beneficiary;
- A spendthrift trust can provide a sound financial foundation for the trust beneficiary;
- A spendthrift trust can help protect the assets of the trust from creditors;
- A spendthrift trust can help protect assets from lawsuits;
- A spendthrift trust can help protect funds from divorce settlements if the beneficiary decides to separate from their spouse.
How Can You Create a Spendthrift Trust in Florida?
If you are looking to create a spendthrift trust in Florida, you may want to consider the following tips:
- Start by working with a skilled estate planning attorney. You and your attorney will work together to determine how much money and assets are available to be transferred into your trust.
- Create your trust according to your wishes, and have your attorney include a “spendthrift clause” in it. This “spendthrift clause” will essentially make your trust a spendthrift trust.
- Select someone who can act as your trustee. The trustee will have the legal authority to transfer assets into and out of the trust, and they must be able to protect the assets from creditors.
- Choose a trustee who is knowledgeable about spendthrift trusts, and make sure they are comfortable with all of the responsibilities involved in this type of trust.
- Review your trust agreement every year to make sure that it remains current and reflects your changing financial circumstances.
Speak to a Florida Estate Planning Attorney
In conclusion, a spendthrift trust can be a valuable tool to protect your wealth in Florida. By establishing and funding a spendthrift trust, you can ensure that your loved ones will not have problems, even if they are not very good at managing resources. However, to create a spendthrift trust in Florida, you will need the help of a lawyer. If you are considering creating a spendthrift trust, speak with an attorney at our firm to get started.