What is the purpose of a spendthrift trust?
What will be an ideal response?
o A spendthrift trust includes a provision that protects the trust principal and unpaid income from creditors and from a beneficiary’s own foolishness. The provision itself restricts the trust assets as much as is possible by law, in such a way that they do not become the beneficiary’s until he or she actually receives the income or portion of the principal. Since the assets are not the beneficiary’s until distributed to the beneficiary, the beneficiary’s creditors cannot claim a right in them.
You might also like to view...
There is no codebtor stay in a Chapter 12 case.
Answer the following statement true (T) or false (F)
Which is not a strike action?
A) Sit-down-strike B) Work-in-strike C) Picketing D) Sit-work-strike
A motion for ________ is filed when a party seeks to change a temporary order due to a substantial change in one of the parties' circumstances.
Fill in the blank(s) with the appropriate word(s).
When helping the client with the ________, the paralegal should remind the debtor of his or her duty to be honest in answering the questions
A) Statement of Intentions B) Statement of Financial Hardships C) Statement of Financial Affairs D) Statement of good faith