Between wills and trusts, each document can address different concerns that may be held by the head of an estate.
Trusts, which are usually more popular with those who have more property to divide, offer a peculiar kind of clause to settlors.
Spendthrift agreements are available to those drawing up trusts who wish to limit the power of the beneficiary over their expected property.
As trust beneficiaries can be children or those who have a history of being unable to control their spending, these agreements are important provisions for certain settlors to keep in mind.
The process of establishing a spendthrift agreement in a trust begins with contacting a probate attorney to draw up the proper documentation.
As the right details are necessary to determine how a spendthrift beneficiary can receive their property eventually, these trusts are drawn up under the guidelines of inter vivos trusts.
Inter vivos trusts apply certain rules and limitations due to fact that, unlike most probate documents, the settlor is still alive at the time of the exchange.
After establishing the earliest parameters of the trust, the settlor then must select a trustee to work through in order to protect his estate.
This person will be responsible for dealing with the settlor's funds in case of death or incapacitation.
In addition, this person will be responsible to legally protect the estate in case of a legal challenge from a beneficiary or creditor.
Finally, the trust can be finalized.
Beneficiaries, either through age or fiscal maturity, will have to prove their ability to live up to the grounds of the spendthrift agreement in order to access their proper inheritance.
If you would like to learn more about spendthrift agreements, trust specifics, and how a legal adviser can simplify this complex field of law, contact a wills and trusts attorney.