top of page

Spendthrifts - Do you have one in the family?

A spendthrift is a person who spends money in an extravagant, irresponsible way.

Do you have a spendthrift in your family? Fortunately for you, Florida law allows you the ability to create a spendthrift trust. This type of trust is one set up by the creator (you) for the benefit of a third party (i.e., a spendthrift child). A full discretionary trust gives the independent trustee complete discretion over distributions and prohibits the beneficiary from compelling a distribution, which makes creditors unable to attach any interest in the trust unless distributions are actually made to the beneficiary.

Florida law also allows you to create a trust containing both mandatory distributions to a beneciary and a spendthrift provision. The spendthrift provision would state something to the effect of: “except as otherwise provided in this part ... a creditor or assignee of the beneficiary may not reach the interest or a distribution by the trustee before receipt of the interest or distribution by the beneficiary.” This provision prohibits a beneficiary from transferring his or her right to distributions and prevents a creditor of a beneciary from attaching the beneficiary’s interest prior to actual receipt of a distribution from the trust.

If creditor protection is a serious concern, you have other options aside from a spendthrift trust. We are happy to discuss these options with you. Please contact us at to schedule an appointment.

Featured Posts
Recent Posts
Search By Tags
No tags yet.
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square
bottom of page