Spendthrift Trust Provisions: Protecting Beneficiaries from Themselves

A spendthrift trust provision is a tool used to help protect beneficiaries from themselves financially. Here are the basics of a spendthrift trust provision.

Using a Trust

If you have a sizable estate, it is going to go to someone else when you pass away. If you want to designate good portions of your estate to your children, you might be afraid of giving them such large lump sums of money. If your children are young, you may not be able to give them direct access to the money anyway. Using a trust can help you with this situation.

Spendthrift Trust Provision

When you set up your trust, you can use what is referred to as a spendthrift trust provision to help you with this problem. By doing this, you will be able to prevent your children or other beneficiaries from gaining direct access to the money when you die. Instead, you will be able to put restrictions on when and how they are going to receive the money. You will be able to specify at what age a beneficiary receives the inheritance and whether he or she gets it all at once.

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