If you’re worried about how a loved one might handle an inheritance, you’re not alone. Maybe they’ve struggled with money in the past, or maybe they’re simply too young to make wise decisions yet. At Kallio Law Firm, LLC, we understand that protecting your family’s financial future takes more than just good intentions—it takes a plan.
A spendthrift trust gives you a way to support your beneficiaries without handing over a lump sum they might misuse or lose. It can help shield your assets from creditors, lawsuits, or a beneficiary’s own spending habits, while still providing long-term financial support. We’ll help you create a plan that aligns with your goals and gives your loved ones lasting stability.
What Is a Spendthrift Trust?
A spendthrift trust is a legal tool that allows you to protect your assets even after you’re gone. Instead of giving money or property directly to your beneficiary, you place those assets into a trust. You then choose someone—called a trustee—to manage and distribute the funds over time.
Here’s how it works:
- The beneficiary can’t demand or withdraw money from the trust
- The trustee controls when and how distributions are made
- The trust’s assets are protected from most creditors until disbursed
This setup helps ensure that the inheritance is used the way you intended—responsibly and with the beneficiary’s long-term well-being in mind.
Who Is a Spendthrift Trust For?
Spendthrift trusts are a good fit in many situations. You may want to consider one if you’re leaving assets to someone who:
- Has difficulty managing money
- Has dealt with addiction, gambling, or financial instability
- Is vulnerable to outside pressure, like financial abuse or manipulation
- May face lawsuits, bankruptcy, or divorce
Creating a trust doesn’t mean you don’t trust your loved ones—it means you want to protect them and the resources you’re passing on. With the right setup, a spendthrift trust can offer support without enabling bad decisions.
Key Benefits of a Spendthrift Trust
There are several reasons people throughout Louisiana use spendthrift trusts as part of their estate plans. Some of the most significant benefits include:
- Protection from creditors: Assets in the trust generally can’t be touched by creditors until they’re distributed.
- Controlled spending: The trustee follows your instructions and can limit access to funds to prevent waste.
- Divorce protection: In most cases, assets in the trust aren’t considered marital property.
- Long-term support: You can set up the trust to provide steady income or milestone-based payouts.
- Custom terms: You decide how funds are distributed—monthly stipends, school payments, or whatever makes sense for your family.
Choosing the Right Trustee
Your trustee plays a big role in how the trust operates. This person (or sometimes an institution) will be responsible for following your instructions, managing trust assets, and communicating with the beneficiary.
We’ll help you think through your options, whether that means choosing a trusted family member, appointing a professional, or creating checks and balances with co-trustees or oversight.
How We Can Help You Set Up a Spendthrift Trust
At Kallio Law Firm, we take a thoughtful approach to every trust we create. Eric Kallio works one-on-one with you to understand your family’s needs, financial concerns, and long-term goals. We draft clear, legally sound trust documents and ensure everything complies with Louisiana law.
Our support doesn’t stop once the trust is signed. We’re here to answer questions, help your trustee understand their role, and make sure your wishes are honored as time goes on. Whether you’re creating a new estate plan or updating an old one, we’re ready to help.
Contact Our Experienced Ascension Parish & Prairieville Spendthrift Trust Attorney
If you’re ready to protect your family’s future and avoid the risks that can come with a direct inheritance, we’re here to help. Contact Kallio Law Firm, LLC today to schedule a consultation. We serve clients in Prairieville, Ascension Parish, and throughout Louisiana. Let’s build a plan that gives you peace of mind and supports the people you love.
