BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A spendthrift trust protects trust property from an irresponsible beneficiary and his or her creditors. A spendthrift trust is a type of property control trust that limits the beneficiary’s access to trust principal. This restriction protects trust property from: a beneficiary who might squander trust property, and.

Detailed explanation-2: -A spendthrift trust is a trust designed so that the beneficiary is unable to sell or give away her equitable interest in the trust property. The trustee is in control of the managing the property. Thus, the beneficiary of the trust is not in control of the property and her creditors cannot reach those assets.

Detailed explanation-3: -For example, a spendthrift provision can control the amount and timing of the beneficiary’s payments. The settlor also appoints a trustee responsible for making the distributions and managing the trust. A family friend or an institution may be appropriate as a trustee of a spendthrift trust.

Detailed explanation-4: -An irrevocable spendthrift trust is a type of trust that either limits or altogether prevents a beneficiary from transferring or assigning his or her interest in the income or the principal of the trust.

Detailed explanation-5: -The trustee of a spendthrift trust has to make disbursements that comply with the provisions of the trust. In other words, the trustee has very little control. A discretionary trust does provide the trustee with some control over funds. They get to decide how and when funds can be distributed to the beneficiaries.