Trusts are important estate planning tools that can allow individuals to place their assets in trust and for the benefit of others. The creator of a trust may place terms and conditions on how the trust beneficiaries may collect their trust income and different types of trusts may achieve different estate planning goals. This post will discuss one specific type of trust - spendthrift trusts - and will describe how some San Diego residents may use them to provide for individuals after the trust creators' deaths.
A spendthrift trust is a trust that prevents what a beneficiary may do with their trust interests. In other types of trusts a beneficiary may be able to sell or pledge their trust interests to others; spendthrift trusts prevent this from occurring and make invalid any attempts of beneficiaries to divest themselves of their trust interests before the time that they take possession of their trust assets.