Home
Forms Library
Spendthrift trust form

Irrevocable trust spendthrift 2025

spendthrift trust form Preview on Page 1

See details

4.3 out of 5

33 votes

The document is an Irrevocable Trust Agreement established for the benefit of the Trustor's children and grandchildren, incorporating spendthrift provisions. It outlines the roles and responsibilities of the Trustor and Trustee, details on initial distributions, division of trust assets among beneficiaries, management of trusts for children and grandchildren, rights of withdrawal, powers of appointment, and provisions for minors. The agreement also includes guidelines for trustee powers, compensation, termination conditions, governing law, and ensures that beneficiaries' interests are protected from creditors.

Here's how it works

01. Edit your spendthrift trust form online

Type text, add images, blackout confidential details, add comments, highlights and more.

02. Sign it in a few clicks

Draw your signature, type it, upload its image, or use your mobile device as a signature pad.

03. Share your form with others

Send irrevocable spendthrift trust via email, link, or fax. You can also download it, export it or print it out.

How to use or fill out irrevocable trust spendthrift with our platform

Ease of Setup

DocHub User Ratings on G2

Ease of Use

DocHub User Ratings on G2

Click ‘Get Form’ to open the irrevocable trust spendthrift agreement in the editor.
Begin by entering the date of the agreement and the names and addresses of both the Trustor and Trustee in the designated fields.
In Schedule A, list all properties being assigned to the trust. Ensure that each item is clearly described for accurate record-keeping.
Fill in the initial distribution amount for each grandchild under 'Initial Distribution'. This amount will be distributed promptly by the Trustee.
Proceed to divide the Trust Estate into equal trusts for each child of the Trustor, ensuring you specify any deceased children and their descendants.
Complete sections regarding income distributions for both children and grandchildren, detailing how often payments will be made and under what conditions.
Review and finalize all provisions, including spendthrift provisions that protect beneficiaries from creditors. Make sure all fields are filled accurately before saving.

Start using our platform today to easily complete your irrevocable trust spendthrift agreement online for free!

be ready to get more

Complete this form in 5 minutes or less

Get form

Got questions?

We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

What is the point of a spendthrift trust?

The main benefit of a spendthrift trust is that it can protect your assets from a potentially unreliable beneficiary. It safeguards your estate without taking the beneficiarys inheritance from them. In addition to asset protection, spendthrift trusts can help protect your beneficiaries from creditors.

What assets should not be placed in an irrevocable trust?

The assets you cannot put into a trust include the following: Medical savings accounts (MSAs) Health savings accounts (HSAs) Retirement assets: 403(b)s, 401(k)s, IRAs. Any assets that are held outside of the United States. Cash. Vehicles.

Can money be spent from an irrevocable trust?

As a threshold matter, you cannot simply withdraw this money from the trust. It no longer belongs to you. Once assets have been placed in an irrevocable trust, they are out of your (or anybodys) docHub until the trust makes its distributions. Instead, you need to plan for this when you establish the trust.

What are the disadvantages of a spendthrift trust?

There are a few disadvantages to spendthrift trusts: Complexity. Spendthrift trusts can be costly to set up and maintain. Permanence. If your spendthrift trust is irrevocable, you likely wont be able to modify it even if circumstances change.

What is a spendthrift irrevocable trust?

Irrevocable spendthrift trusts are irreversible asset transfers. They have the advantage of potentially reducing estate taxes, because once the assets go into the trust, theyre technically no longer your assets and thus not part of your taxable estate.

sample spendthrift trust

Irrevocable trust spendthrift pros and cons Disadvantages of irrevocable trust spendthrift Irrevocable trust spendthrift example Irrevocable trust spendthrift vs spendthrift Spendthrift trust example Spendthrift trust pros and cons Is a spendthrift trust revocable or irrevocable What states allow spendthrift trusts

Who pays taxes on a spendthrift trust?

Assets are removed from your estate, potentially reducing estate taxes. Trust pays taxes on undistributed income. Beneficiaries pay taxes on distributions they receive.

What is the difference between a spendthrift trust and a regular trust?

The key difference between the two types of trusts is intent. An APT is designed to protect a beneficiarys assets in legal situations, while a spendthrift trust is designed to protect a beneficiary financially due to behavioral issues, disabilities, or mental illness.