Nevada residents have many different types of estate planning tools at their disposal. One of these is a spendthrift trust. Essentially, this type of trust is ideal for those who have a beneficiary who cannot control their spending habits.
Under Nevada law, a spendthrift trust gives you, the trustee, the right to dictate how the money can and cannot be spent by the beneficiary. This leaves the beneficiary with little control over the assets left to them. But, this may also be beneficial to avoid creditors having access to the money prior to distribution. If you do not explicitly say the assets can be used to pay off debts, the creditors cannot touch it.
But there are specific stipulations surrounding spendthrift trusts. It cannot be used to defraud creditors. In addition, if the trust is for the benefit of someone besides the grantor, this type of trust may be created. Even if the settlor is able to prevent assets from being distributed, the trust may still be carried out.
Spendthrift trusts are especially advantageous for trustees who wish to leave money to beneficiaries who, for one reason or another, are physically or mentally unable to make decisions for themselves. The trust can be set up in a way that pays the beneficiary’s bills and expenses without them ever having to handle the assets themselves.
This is just one of the many estate planning choices you have in Nevada. To further explore your options, it may be advantageous to consult with an experienced attorney.