[WSBAPT] Testamentary Spendthrift Trust

[Margaret Delp]

Hello everyone: 

 

Is it permissible to create a Will with a testamentary trust with spendthrift provisions for a beneficiary who has current, known creditors? I know that funding a self-settled trust to avoid creditors could be a voidable transaction under RCW 19.40, there isn’t an analogous prohibition on creating a third-party testamentary trust for a beneficiary with known creditors, correct? 

 

I have a client who was advised in another state that they could not create a testamentary trust for just one of their children (one with potential creditor issues), but needed to create trusts for all of the testator’s the children. Anyone know why that would be the case?

 

Thanks,

Margaret

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Law Office of Margaret Delp

Mailing Address: PO Box 292, Langley, WA 98260

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5671 Crawford Road, Langley, WA (located just off of Highway 525 and shares a driveway with Unity of Whidbey)

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www.delp-law.com

 

 

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