Does your family situation call for a spendthrift trust?
Abstract: For those who have concerns that an heir might squander his or her inheritance, drafting a spendthrift trust might be the solution. This trust may incorporate various tax benefits, including taking advantage of the federal gift and estate tax exemption. But that’s not its primary focus: Its main purpose is asset protection. This article explains how a spendthrift trust works and why it’s important to choose the right trustee. A sidebar details the reasons why a professional is needed to create the trust.