At its core, a trust is simply a contract to control and manage property/assets for the good of one or more beneficiaries.
STATUTORY TRUST LAW
are created and governed by specific legislation enacted by the state or jurisdiction.
have predefined provisions and requirements.
governing laws may vary across jurisdictions, and compliance with the specific statutory requirements is mandatory.
COMMON TRUST LAW
allows for greater customization and flexibility to meet specific needs and circumstances.
is more suitable for complex trust arrangements.
allow for more flexibility in terms of trust and provisions.
rely on the traditional legal doctrines of fiduciary duty, and loyalty to guide trustee actions and decision-making.
SPENDTHRIFT TRUST ADVANTAGES
Creditor Protection: Beneficiaries are shielded from potential creditors’ claims, ensuring trust assets remain intact.
Controlled Distributions: Trust terms dictate when and how beneficiaries receive distributions, preventing reckless spending.
Beneficiary Protection: Ideal for financially inexperienced or vulnerable beneficiaries, offering reliable support without jeopardizing the trust’s principal.
Divorce Protection: Trust assets are generally not considered marital property, safeguarding them in divorce proceedings.
Minimized Estate Taxes: Proper structuring can help reduce estate tax liabilities, maximizing wealth transfer to beneficiaries.
