Why would you need this type of Trust?
A Spendthrift Trust can be used if you have a beneficiary who cannot control their spending or needs creditor protection. This type of Trust protects assets from the creditors of the beneficiary and from the beneficiary’s misuse.
Is it irrevocable or revocable?
The Spendthrift Trust is irrevocable, meaning it cannot be changed once it is created. Generally, a Spendthrift Trust is embedded inside of a Revocable or Irrevocable Trust.
Is a separate tax identification required?
Yes, a separate tax identification number is required to separate the Spendthrift Trust from other trust assets.
Is there creditor protection?
Yes, the Spendthrift Trust is set up to protect assets from the beneficiary’s creditors.
What assets can be placed in this type of Trust?
Any assets can be held in a Spendthrift Trust.
How does it work?
In most cases, the Spendthrift Trust is set up for the benefit of another person (for example, a parent sets it up for a child). In some states, Ohio included, you can set up a Domestic Asset Protection Trust to gain creditor protection.