If you're looking to protect your assets and ensure that they're not squandered, a spendthrift trust may be the solution you're looking for. In this article, we'll go over the basics of spendthrift trusts, how they work, and why you might need one. We'll also cover what you should look for in a spendthrift trust attorney and how Heritage Law Office can help.
What is a Spendthrift Trust?
A spendthrift trust is a type of trust designed to protect the beneficiary's assets from creditors and ensure that they are used responsibly. The trust is managed by a trustee who is responsible for distributing the trust's assets to the beneficiary according to the trust's terms. The beneficiary typically cannot access the trust's assets directly and has no control over how the assets are invested or managed.
The spendthrift provision of the trust prevents creditors from attaching or seizing the beneficiary's interest in the trust. This means that the beneficiary's creditors cannot force the trustee to distribute the trust's assets to pay the beneficiary's debts. The spendthrift provision also protects the beneficiary from their own poor financial decisions.
Understanding Spendthrift Trusts
Spendthrift trusts are useful tools for protecting your assets and ensuring that they are used wisely. Here are some important things to keep in mind when setting up a spendthrift trust:
Benefits of a Spendthrift Trust
- Protects assets from creditors: A spendthrift trust provides protection from creditors, which is particularly useful if you're in a high-risk profession or have a lot of debt.
- Encourages responsible spending: The trustee is responsible for managing the trust's assets and ensuring that they are used for the beneficiary's benefit. This can help prevent the beneficiary from making poor financial decisions.
- Provides for future generations: A spendthrift trust can be set up to provide for future generations, ensuring that your assets are passed down to your descendants.
Types of Spendthrift Trusts
- Discretionary trust: The trustee has complete discretion over when and how to distribute the trust's assets to the beneficiary.
- Support trust: The trustee is required to distribute a certain amount of the trust's assets to the beneficiary each year for their support.
- Hybrid trust: A combination of a discretionary trust and a support trust.
Choosing a Spendthrift Trust Attorney
When choosing a spendthrift trust attorney, it's important to look for someone who is experienced in trust law and has a track record of success. Here are some things to keep in mind:
- Experience: Look for an attorney who has experience setting up spendthrift trusts and is knowledgeable about the laws surrounding trusts in your state.
- Reputation: Check the attorney's reputation online, and read reviews from past clients to get an idea of their success rate.
- Communication: Look for an attorney who is responsive to your needs and can explain complex legal concepts in a way that you can understand.
Spendthrift Trust Attorney in Wisconsin
Heritage Law Office is a trusted provider of estate planning services in Wisconsin. Our experienced attorneys can help you set up a spendthrift trust that protects your assets and ensures that they are used wisely. We offer a wide range of estate planning services, including wills, trusts, and powers of attorney.
To learn more about how Heritage Law Office can help you set up a spendthrift trust in Wisconsin, contact us either online or at 414-253-8500 to schedule a free consultation today.
Cities in Wisconsin where Services are Offered
- Green Bay
- Eau Claire
- Elm Grove
- Fox Point
- Whitefish Bay
- and more.
We also offer remote, phone, and online appointments, so you can receive our services wherever you are in Wisconsin.
At Heritage Law Office, we understand that every individual's needs are unique, which is why we provide personalized and comprehensive estate planning services. Our attorneys have a deep understanding of the intricacies of trust law, and we work tirelessly to ensure that our clients' assets are protected and their wishes are carried out.