Spendthrift Trusts Can Protect Beneficiaries From Themselves

Louisiana residents who have worked hard and saved diligently often worry about leaving large sums to beneficiaries who are very young, have problems with drugs or alcohol, or have acted irresponsibly with money in the past. Spendthrift trusts allow their creators to control how their assets will be distributed after they pass away, and they can be used to protect beneficiaries from themselves.

Spendthrift trusts

The assets placed into a spendthrift trust are managed by an independent trustee. This trustee is given authority by the trust’s creator to distribute funds either when they see fit or when certain predetermined milestones are reached. Spendthrift trusts often contain rules that only allow funds to be distributed when beneficiaries reach a certain age, graduate from college, have a child or maintain sobriety for a given period of time. Spendthrift trust creators include these provisions to protect their beneficiaries and to prevent them from being taken advantage of.