[WSBAPT] Testamentary Spendthrift Trust

[Philip N. Jones]

I don’t think it is a problem, for example, for parents to create a spendthrift trust for their impecunious son.  After all, it’s their money.
Phil Jones

Get Outlook for iOS<https://aka.ms/o0ukef>
________________________________
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Margaret Delp <delp at whidbey.net>
Sent: Thursday, January 11, 2024 4:37:13 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Testamentary Spendthrift Trust


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

--

Law Office of Margaret Delp

Mailing Address: PO Box 292, Langley, WA 98260

NEW LOCATION:

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

Phone: 360-579-4530

Fax: 360-512-3114

www.delp-law.com<http://www.delp-law.com/>




-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20240112/2db2ebc8/attachment.html>