Spendthrift

Noun: a person who spends money in an extravagant, irresponsible way.

 

Most parents want to provide for their children, but they want to ensure that the children cannot squander the money or have it taken from them by an unwanted creditor. The benefit of Spendthrift Trusts is that only the child can benefit from the money that is placed in the trust—creditors cannot access the funds, nor can the individual use the funds to make unwise decisions.

 

Some parents tell us that they do not want to control “from the grave”. The more I learn about their situations, the issue at hand is not control, but rather it is protection that they seek. Protection to ensure that an unwanted creditor cannot take money, as well as protection so that no one makes a decision they will later regret. Either way, these types of trusts are very common and extremely valuable in protecting the money for the child alone, and no one else.

 

If you have an individual that you think could benefit from this type of planning, please let us know by reaching out to us at 717-845-5390 or signing up for one of our free weekly workshops!