As a parent or grandparent, it is natural to have concerns about your beneficiaries’ ability to effectively manage money. Certain beneficiaries in Massachusetts might not be capable of responsibly handling assets. If you also have family members who might be trusted with assets and you’re concerned about mixing these heirs together in your estate plan, your Massachusetts estate planning lawyer might recommend what’s known as a spendthrift trust.
A spendthrift trust like many other variations of a trust is overseen by a trustee. This person can be an individual or you might choose a corporate trustee.
The primary responsibility of your spendthrift trust trustee is to disperse assets from inside the trust. A spendthrift trust can require that the beneficiary is not able to access any of the money inside the trust until it is time for that party to receive distribution, and at that point in time the trustee would have the discretion to decide which payments should be made based on the terms of the trust agreement that you established when you created it.
The process of creating a spendthrift trust is the same as what you would do when establishing any other type of trust, but the key difference here is that a spendthrift provision will be outlined. Your Massachusetts estate planning attorney can help to verify that all trust documents are appropriately prepared so that the intended terms are very clear and provide for the best transfer of assets to your heirs.
