• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to secondary navigation
  • Skip to primary sidebar
  • Skip to footer

Before Header

Call us today for help!  (631) 265-0599
  • Facebook
  • LinkedIn
  • Twitter

Eghrari-Logo

Long Island Elder Law & Estate Planning

  • Home
  • Who We Are
    • About Our Firm
    • Meet Our Team
  • Resources
    • Client Resources
      • Definitions
      • Docubank
      • Elder Law Resources
        • Brentwood Elder Law
        • Central Islip Elder Law
        • Commack Elder Law
        • Hauppage Elder Law
        • Smithtown Elder Law
      • Estate Planning Resources
        • Estate Planning Check Up
        • Estate and Gift Tax Figures
        • Estate Planning Techniques
        • Estate Planning Worksheet
        • FREE Estate Planning Seminars
        • Long Island Estate Planning Resources
      • New York Medicaid Resources
        • Medicaid Planning Worksheet
      • Nursing Home Resources
      • Probate Resources
        • Brentwood Probate
        • Central Islip Probate
        • Commack Probate
        • Hauppage Probate
        • Smithtown Probate
        • Suffolk County Probate Resources & Checklist
      • Presentations
      • Retirement Planning Checklist
      • Trust Administration Resources
    • Elder Law Reports
    • Frequently Asked Questions
      • Business Planning
      • Estate Planning
      • Families Without an Estate Plan
      • Incapacity Planning
      • LGBTQ Estate Planning
      • Medicaid Planning
      • Probate
      • Trust Administration
      • Trust Administration & Probate
      • Wills and Trusts
    • Reports
  • Estate Planning
    • Asset Protection & Business Planning
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses
    • Incapacity Planning
    • Legacy Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
    • Young Families
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Hospice Care
    • Medicaid Planning
  • Areas We Serve
    • Long Island
    • Nassau County
      • Oyster Bay
    • Suffolk County
      • Brentwood
      • Central Islip
      • Commack
      • Hauppauge
      • Smithtown
  • Blog
  • Contact Us

Mobile Menu

  • Home
  • Who We Are
    • About Our Firm
    • Meet Our Team
  • Resources
    • Client Resources
      • Definitions
      • Docubank
      • Elder Law Resources
        • Brentwood Elder Law
        • Central Islip Elder Law
        • Commack Elder Law
        • Hauppage Elder Law
        • Smithtown Elder Law
      • Estate Planning Resources
        • Estate Planning Check Up
        • Estate and Gift Tax Figures
        • Estate Planning Techniques
        • Estate Planning Worksheet
        • FREE Estate Planning Seminars
        • Long Island Estate Planning Resources
      • New York Medicaid Resources
        • Medicaid Planning Worksheet
      • Nursing Home Resources
      • Probate Resources
        • Brentwood Probate
        • Central Islip Probate
        • Commack Probate
        • Hauppage Probate
        • Smithtown Probate
        • Suffolk County Probate Resources & Checklist
      • Presentations
      • Retirement Planning Checklist
      • Trust Administration Resources
    • Elder Law Reports
    • Frequently Asked Questions
      • Business Planning
      • Estate Planning
      • Families Without an Estate Plan
      • Incapacity Planning
      • LGBTQ Estate Planning
      • Medicaid Planning
      • Probate
      • Trust Administration
      • Trust Administration & Probate
      • Wills and Trusts
    • Reports
  • Estate Planning
    • Asset Protection & Business Planning
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses
    • Incapacity Planning
    • Legacy Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
    • Young Families
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Hospice Care
    • Medicaid Planning
  • Areas We Serve
    • Long Island
    • Nassau County
      • Oyster Bay
    • Suffolk County
      • Brentwood
      • Central Islip
      • Commack
      • Hauppauge
      • Smithtown
  • Blog
  • Contact Us

How Does a Spendthrift Trust Work?

A spendthrift trust is a trust that you can create if you want to leave money to someone but you are concerned that the person who you are leaving money to is irresponsible with managing money. The trust allows you to make a financial gift without worrying that the money will just be lost right away to creditors or will be spent quickly with nothing to show for it. spendthrift trust

You need to make an informed choice about whether a spendthrift trust is the right choice to protect an inheritance you want to leave to a loved one. You also need to make certain that you have taken the proper steps to create a legally valid trust under New York law.

Eghrari Wealth Training Law Firm can help. Call us today to talk with a Long Island trust lawyer to find out more about how a spendthrift trust works and about how you can create one.

How Does a Spendthrift Trust Work?

A spendthrift trust is a trust that you create in accordance with New York laws. You must follow the required process for preparing your trust document, which an experienced attorney can assist you with.

When you create your trust, you will name a beneficiary. The beneficiary is the person who you want to provide a financial gift to but who you are worried is not going to be able to manage the money or use the gift wisely

You also name a trustee. The trustee is the person who is vested with responsibility for managing the funds and property held within the trust and for doling out funds to the beneficiary according to your instructions in the trust document. The trustee has a fiduciary duty to act in the best interests of the beneficiary and to manage the money in an appropriate manner. You can select someone who you are confident has the ability to be responsible with protecting the wealth you are leaving behind for your beneficiary.

You will also need to fund the trust, which means transferring the ownership of some of your assets to the trust. One major purpose of creating a trust is so that the trust is the owner of the assets, not your beneficiary who is irresponsible with money. Since the beneficiary does not actually own anything, creditors cannot try to take the property you have left to him. The trust will own whatever property you transfer into it, and the trustee will manage the funds and use the property according to your instructions to provide financial aid to the beneficiary. An experienced attorney can help you with the process of funding the trust.

Do You Need a Spendthrift Trust?

You should strongly think about creating a spendthrift trust if you have any concerns that a person who you will be giving money to is not going to be able to effectively manage the funds. You work hard for the money you have made and the wealth that you have created. You want to use that money to take care of the people you love, and you want an inheritance to be a blessing.

If money is given to someone who cannot be responsible with it, or who loses it quickly, then your hard work won’t be able to provide the type of financial stability and security you wanted to offer your loved one. Your wealth should not just be lost to creditors or bad spending decisions but should instead be used wisely to truly enhance the quality of life of your loved ones. A spendthrift trust can help to make that happen by ensuring that money is managed appropriately and provided to your beneficiary according to your instructions.

There are also other types of trusts you can consider using to protect heirs and to provide appropriate control over your assets. Eghrari Wealth Training Law Firm can help you to make a decision on what type of trust can best accomplish your estate planning goals.

Getting Help from A Long Island Trusts Lawyer

Eghrari Wealth Training Law Firm can offer you advice on all of the different kinds of trusts available under New York law and can assist you in selecting the right kind of trust to meet your family’s needs. Give us a call at (631) 265-0599 or contact us online to find out more about how spendthrift trusts work. You can also join us for a free seminar to discover more about trust creation as part of a comprehensive estate plan.

  • Author
  • Recent Posts
Eghrari Wealth Training Law Firm
Mark S. Eghrari is an attorney in private practice in Smithtown, New York. He has been in practice since 1988. Mark S. Eghrari provides extensive estate and tax planning services to individuals and businesses. Mr. Eghrari’s primary focus is helping clients avoid probate, minimize or eliminate Federal and State Estate taxes and protect their assets from the high cost of nursing care, if they become ill.
Latest posts by Eghrari Wealth Training Law Firm (see all)
  • Trust Creation Steps for the Beginner - May 18, 2022
  • The Equal Gifting Dilemma - May 4, 2022
  • Can I Prevent a Challenge to My Will? - April 27, 2022

About Eghrari Wealth Training Law Firm

Mark S. Eghrari is an attorney in private practice in Smithtown, New York. He has been in practice since 1988. Mark S. Eghrari provides extensive estate and tax planning services to individuals and businesses. Mr. Eghrari’s primary focus is helping clients avoid probate, minimize or eliminate Federal and State Estate taxes and protect their assets from the high cost of nursing care, if they become ill.

Previous Post: «Long Island estate planning attorney Questions to Ask a Long Island Estate Planning Attorney
Next Post: Questions to Ask a Long Island Probate Attorney Long Island probate attorney»

Primary Sidebar

Blog subscription

  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • LinkedIn
  • Twitter

Where We Are

Eghrari Wealth Training Law Firm
50 Karl Avenue, Suite 202
Smithtown, NY 11787
Phone: (631) 265-0599
Fax: (631) 265-0754

See Larger Map
Get Directions

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 2:00 PM

Map

map for Eghrari Wealth Training Law Firm office

Footer

Office Location

Eghrari Wealth Training Law Firm
50 Karl Avenue, Suite 202
Smithtown, NY 11787
Phone: (631) 265-0599
Fax: (631) 265-0754

See Larger Map
Get Directions

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 2:00 PM

Sign Up for Our Newsletter

Sign up to get our free estate planning newsletter for all of our tips and resources

  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

Site Footer

ATTORNEY ADVERTISEMENT

Copyright © 2022 American Academy of Estate Planning Attorneys · All Rights Reserved