What is a Florida Spendthrift Trust? alimony or child support) against a delinquent spouse or parent. Such a provision sets forth special language preventing creditors from attaching or “taking away” the interest of a beneficiary named in a Trust.Florida law enforces spendthrift provisions so long as they apply to both voluntary and involuntary transfers. Id . Florida courts have noticed as well and have decided that the practice is void as against public policy. This type of trust is best suited for individuals who may be a financial danger to themselves if given unfettered control or may be subject to being taken advantage of or exploited. Spendthrift Trust Lawyer in Miami, FL Clients needing legal solutions for Spendthrift Trust can connect with Sloto & Diamond, PLLC, a local Florida practice. Under Florida’s trust or probate code a Spendthrift clause does not provide protection against exception creditors. Exception creditors are typically spouses, former spouses or children of a beneficiary who have obtained a support judgment (e.g. In Florida, a person can create a trust with a variety of different protections and limitations. A spendthrift trust is an irrevocable living trust that's overseen on an ongoing basis by a trustee, from the time of its inception and continuing on after the death of the grantor. SPENDTHRIFT TRUST AGREEMENT ARTICLE I TRANSFER IN TRUST For good and valuable consideration, the Undersigned, Charles Smith , Sarah Smith , husband and wife, County of Las Collinas, State of Texas ... SPENDTHRIFT PROVISION After any of … 736.0502 Spendthrift provision.

spendthrift clause: n. a provision in a trust or will that states that if a prospective beneficiary has pledged to turn over a gift he/she hopes to receive to a third party, the trustee or executor shall not honor such a pledge. By: Florida Estate Planning Attorney Thomas Upchurch of Upchurch Law – Daytona Beach, FL. A spendthrift trust is an irrevocable living trust that's overseen on an ongoing basis by a trustee, from the time of its inception and continuing on after the death of the grantor. The Florida Asset Protection Trust (“FLAPT”)is an irrevocable trust that is sitused (at least initially), in the state of Florida but which is highly flexible to meet the needs of the trusts’s creator (called the Settlor) over time. Spendthrift Trust. How Does a Florida Spendthrift Trust Work? Under Florida law, a spendthrift provision in a trust does just that – protects the beneficiary’s inheritance from the beneficiary’s spendthrift ways. Irrevocable Trusts in Florida [Overview, Pros and Cons] ... by creating an irrevocable spendthrift trust and naming yourself as beneficiary, you can enjoy the benefits of property that is effectively immune to creditor claims. A spendthrift trust is a trust that is created for the benefit of a person (often unable to control his spending) that gives an independent trustee full authority to make decisions as to how the trust funds may be spent for the benefit of the beneficiary. (1) A spendthrift provision is valid only if the provision restrains both voluntary and involuntary transfer of a beneficiary’s interest. Under Florida’s trust or probate code a Spendthrift clause does not provide protection against exception creditors. Facebook. This subsection does not apply to any trust the terms of which are included in an instrument executed before the effective date of … Google+. With this type of trust, beneficiaries cannot transfer their inheritance interest to anyone, and creditors are not able to take any of the trust … Thus, the Zlatkisses were unsuccessful in their attempt to have the trust repay Steinmetz’s debt to them. Spendthrift Provisions in Your Florida Trust . Asset protection is an important aspect of Florida Estate Planning and is a delicate process for Florida residents. The Basics of a Florida Spendthrift Trust: (Photo Credit: "Treasure chest" by Timitrius is licensed by CC by-SA 2.0). A spendthrift trust ensures that some trust property can be made available to the beneficiary, without the possibility that the beneficiary could squander it all at once. Spendthrift trusts are usually made by a grantor who wants to leave property to a beneficiary but is worried that the beneficiary won’t use the property wisely or that he or she might get into trouble with creditors.

(1) A spendthrift provision is valid only if the provision restrains both voluntary and involuntary transfer of a beneficiary’s interest. N.D.Fla.1990) (holding, under Florida law on spendthrift trusts, debtor’s interests in his employer’s thrift plan was not exempt from his bankruptcy estate where it was self-settled); JOHN G. GRIMSLEY, FLORIDA LAW OF TRUSTS § 15-5(b) (4th ed. The court noted that “spendthrift provisions have long been recognized as valid in Florida” and Florida Statutes 736.0501-.0507 provide for the enforcement of spendthrift trusts. LinkedIn. A spendthrift trust is a trust that restrains the voluntary and involuntary transfer of the beneficiary's interest in the trust. Many trusts are closed down after their grantor dies and their assets have been distributed to their beneficiaries, but a spendthrift trust remains up and running.