Most parents in Ohio do their best to help their kids understand basic and important life skills. They may teach them how to care for their own physical needs and how to budget for their financial expenditures. While some children may embrace these lessons and thrive in adulthood, others may struggle to give up their adolescent ways.
A parent who wishes to provide for their child through their estate plan may worry that their child will quickly exhaust their inheritance due to their extravagant spending. They may have concerns that their child will not have the financial help that they require because they are unable to manage their own financial affairs. For individuals in this worrisome situation, a spendthrift trust may be useful.
A spendthrift trust is a trust in which the beneficiary cannot sell or give away their trust interests. As a beneficiary they may receive regulated payments from the trust, but they may not control its administration or use. It is only when the trust ends and the beneficiary receives its property that the beneficiary may have any control over its disposition or use.
Spendthrift trusts may be created by anyone who wishes to provide for someone who does not possess the capacity to manage their own spending. They are not limited to use between parents and children. Many different forms of trusts exist that can serve the estate planning needs of their creators. To learn more about spendthrift trusts and the many other trust options that Dublin residents have, readers can contact their estate planning attorneys for useful information and individual legal advice.