what is a spendthrift trust: a guide for ohio residents
TRANSCRIPT
A spendthrift trust is a type of trust that you create if you want to leave an inheritance to someone who you
think may not be responsible enough to handle receiving a large
sum of money.
You should create a spendthrift trust when making a gift to a loved
one who is frequently in debt or who has proven to be bad at managing
investments.
When you create a spendthrift trust, you can work with an attorney to
create a formal trust document that follows Ohio guidelines for valid
trust creation.
The spendthrift trust protects an inheritance because the person
who is inheriting and who is irresponsible with funds does not
actually own the funds or get control over the entire inheritance.
The trust owns the assets and the trustee manages the assets on
behalf of and for the benefit of the trust beneficiary.
Your trust document will provide instructions as to when and how the beneficiary receives portions of his
inheritance.
Because the irresponsible heir does not own assets, creditors cannot go
after the money or property you leave to the heir.