Leaving a large inheritance to a young or financially inexperienced heir can sometimes do more harm than good. That’s where a spendthrift trust comes in.
Spendthrift trusts help prevent wasteful spending, protect assets from creditors, and give you peace of mind that your legacy will be used responsibly.
What Is a Spendthrift Trust?
A spendthrift trust includes legal language that:
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Prevents creditors from accessing the beneficiary’s interest in the trust
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Limits how and when funds are distributed
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Gives the trustee discretion to manage the trust assets on the beneficiary’s behalf
In short, it protects your heir from both outside threats and their own potentially poor decisions.
Age-Based Releases
One common structure is to release trust funds gradually. For example:
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1/3 of the trust at age 25
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1/3 at age 30
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Final 1/3 at age 35
This gives beneficiaries time to mature financially and emotionally.
Discretionary Distributions
Another option is to leave distributions entirely up to the trustee. This gives maximum flexibility—especially if the heir has a history of addiction, legal issues, or instability.
Trustees can be instructed to distribute funds only for education, healthcare, or essential needs.
Who Should Consider a Spendthrift Trust?
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Parents of young adult children
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Families with concerns about substance abuse or overspending
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Individuals worried about divorcing spouses, lawsuits, or business failure
Thoughtful Planning Creates Long-Term Stability
Spendthrift trusts aren’t about control—they’re about care. They let you provide for your loved ones while protecting the life you’ve worked hard to build.