Spendthrift provisions are a common feature of many estate plans and can be a useful way to protect your children's inheritance from creditors or other potential claimants. Spendthrift provisions are clauses that are included in a trust or will that restrict the ability of beneficiaries to sell, transfer, or encumber their inheritance. For example, a spendthrift provision might prevent a beneficiary from borrowing money against their inheritance, or from using their inheritance as collateral for a loan.
Whether or not you should include spendthrift provisions in your estate plan to protect your children depends on a number of factors, including your family's specific financial situation and the age and maturity of your children. In general, spendthrift provisions can be a useful tool for protecting your children's inheritance, but they may not be necessary in every situation.
If you're considering whether to include spendthrift provisions in your estate plan, it's a good idea to talk to an experienced estate planning attorney. They can help you understand the potential benefits and drawbacks of including spendthrift provisions and can help you determine whether they are right for your family.
