Spendthrift Agreements

There are some basic differences between trusts and wills that change which document is drafted by a particular person. In some instances, money or property left to a beneficiary may be of great amount or worth, while the beneficiary may not be mature enough to handle these sums of wealth. Trust law allows for the person establishing the trust to set up special terms for their inheritance plan which limit beneficiary power. With certain stipulations in place, spendthrift agreements allow an estate to be preserved and handed down to an individual who is better suited to work with that sort of property.

Contact the Houston wills and trusts lawyers of Garg & Associates, P.C. at 281-362-2865 to discuss your legal options with a knowledgeable probate advisor today.

How Spendthrift Agreements Work

As with most estate law, the details of how spendthrift agreements actually work can prove confusing for those unfamiliar with legal terminology. In most cases, spendthrift agreements in wills are characterized by the following traits:

  • The trust established is an inter vivos (between the living) trust
  • In the spendthrift clause, a separate trustee is nominated
  • This person may then dispense the estate‚Äôs property to the actual beneficiary
  • Courts have verified the legality of these agreements

It is difficult for beneficiaries to fight these agreements under court precedents. On the other hand, it is not unusual for creditors to attack these agreements to obtain money that may rightfully belong to them.

Contact Us

Probate law is full of very detailed strategies and contracted agreements that use the law to allow for certain types of property exchanges. As protecting an estate after death or incapacitation can be a priority for some, legal advice is extremely important. To learn more about your options in dealing with your estate, contact the Houston wills and trusts attorneys of Garg & Associates, P.C. by calling 281-362-2865.

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Garg & Associates, PC | 21 Waterway Avenue, Suite 300 | The Woodlands, Texas 77380 Please call 281-362-2865 | Fax: 866-743-4506
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