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(Name of Trustor), of (street address, city, county, state, zip code), hereinafter referred to as Trustor, and (Name of Trustee) of (street address, city, county, state, zip code), hereinafter referred to as Trustee. The Trustor, in consideration of the agreements and undertakings set forth below made and assumed by the T.

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A spendthrift trust is a trust designed so that the beneficiary is unable to sell or give away her equitable interest in the trust property. The trustee is in control of the managing the property. Thus, the beneficiary of the trust is not in control of the property and her creditors cannot reach those assets.

Similar to the federal tax lien, the IRS may levy upon all property and property rights of the taxpayer at the time the levy is made. Id. Generally, federal courts have held that the IRS may levy upon a taxpayer-beneficiary's interest in a spendthrift trust.

Tax Considerations Goods, services, and cash paid to the beneficiary are considered taxable income. The beneficiary is responsible for filing and paying his own taxes on any distribution.

Spendthrift trusts can be revocable or irrevocable and include the same key elements as other types of trusts, including: A grantor who establishes the trust (that's you) A trustee who manages the trust. A beneficiary or beneficiaries who receive the assets held in the trust.

A third-party member called a trustee is responsible for managing and overseeing an irrevocable trust.

A spendthrift trust is a trust designed so that the beneficiary is unable to sell or give away her equitable interest in the trust property. The trustee is in control of the managing the property. Thus, the beneficiary of the trust is not in control of the property and her creditors cannot reach those assets.

The pros of a spendthrift trust are that it can prevent creditors and lawsuits from attaching to the beneficiary's assets and provide a steady income stream. The downside is that it can be expensive to set up and maintain, and the beneficiary may be able to challenge the trust's spendthrift provisions in court.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232