There are many benefits of a Spendthrift Trust, but three stand out. The first is the Protection of Assets which is like putting a lock box around your estate and holdings to protect them against judgments, levies, and lawsuits. In a litigious culture such as ours, each of us are only a heartbeat away from loss of our assets due to a lawsuit. Harsh judgments from car accidents, slip and fall accidents, injuries caused by animals, workplace accidents, frivolous lawsuits from sexual harassment to professional malpractice to wrongful death, are daily occurrences.

Business owners are especially at risk with a one in four probability of being sued. Those who have a business under a statutory LLC or Corporation have a false security because both can easily be pierced through a lawsuit with a good attorney. Should that happen, your personal and business assets of a lifetime are subject to court judgments and loss. However, assets placed in a Spendthrift Trust are protected from lawsuit since the Trust is not a statutory entity.

Assets may include bank accounts, precious metals, digital currency, real estate, stock market investments, life insurance, annuities (not IRA or Roth), a business asset, intellectual property, or anything else which has a monetary value.