Funny name, serious implications: The basics of spendthrift clauses
November 5, 2024 by Tobias Salinger
Financial advisors and tax professionals seeking to help clients protect trust assets in the event of divorce, lawsuits or an extravagant heir should know the basics of a spendthrift clause.
An ever-growing alphabet soup of trust entities enable planners to assist clients in moving assets out of their taxable estates. However, without the right so-called “spendthrift” protections in place and an understanding that the rules for those clauses vary a great deal between states, the clients could face threats to the orderly distribution of their estates.
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Wink’s Moore on the Market: I have a spendthrift clause on my trust. -sjm