Law Offices of Frye & Vazquez, P.L.
Call Today. 305-508-5749 | 877-421-5473

Consider a self-settled trust in your estate planning

It’s always a great idea to be sure that your loved ones will be taken care of after you’re gone, but when you’re working out your estate planning, are you making sure to protect your assets from future creditors during your lifetime? A savvy method of asset protection that’s growing more popular is a form of trust called the spendthrift trust, or self-designated trust.

This type of trust stands out from other trusts with its unique structure of naming the grantor as the beneficiary. It protects the grantor’s own assets while he or she is still alive, from creditors as well as a possible ex-spouse. An independent trustee is named who controls the distributions, and who is not required to distribute money to the grantor if it’s not in the best interests of the estate.

A few restrictions apply: The trust can’t be made to defraud current creditors or keep them from accessing any assets to pay off debts. The rules regarding self-designated trusts vary by state and can be complicated. And since the independent trustee has the power to restrict distributions, he or she must be someone the grantor can trust to manage the assets.

Still, a self-designated trust has many benefits. For example, a gift of $5.25 million for the lifetime gift tax exemption can be made to the trust, protecting it from future creditors and taxes. The remainder of the estate under the trust’s protection can go to the other beneficiaries--such as loved ones--after the grantor’s death.

The spendthrift trust is still a relatively new practice in estate planning. It’s recommended to consult with an estate planning attorney to be sure of Florida’s laws regarding self-designated trusts.

Source: Palisades Hudson, “Using A Self-Settled Trust To Protect Assets,” David Walters and Melinda Kibler, June 10, 2013

What Our Clients Are Saying

  • I have known and worked with Austin Frye and his team since 2008. In that time he has helped serve both my business and personal legal planning needs. From guidance on reviewing and keeping shareholder and state documentation up to date... - Robert
  • It is difficult enough to cope with the emotional challenges of closing a parent's estate, and when you are also faced with the issue of your parents having insufficient documentation, and being remote from your siblings… - Zara L.
  • Austin Frye provided legal services to my father while alive and to his estate after his death; when showing the EP docs his firm prepared to other professionals (lawyers, financial advisors, accountants)… - Mark S
  • I've been a client of Austin Frye's for over 10 years. In that time, he's handled my estate/trust planning and asset protection as well as complicated business deals. - Leslie
  • Mr. Frye recently set up a complicated special needs trust for my son and, as usual, did a great job explaining it and in putting our minds at ease about our son's future well-being. - Dr. Howard
Read More...
  • NYSBA
  • Massachusetts Bar Association
  • The Florida Bar 1950
  • CFP
  • Florida Bar Elder Law Member
  • Academy Of Florida Elder Law Attorneys
  • Florida bar Business law Member
  • NAELA National Academy of Elder Law Attorneys, Inc.
Email Us For a Response

Contact Us For Personal Attention To Your Legal Matter

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Location

Get In Touch With Us
20900 W. Dixie Highway
Aventura, FL 33180

Toll Free: 877-421-5473
Phone: 305-508-5749
Map & Directions