Parties to the Spendthrift Trust:
1. Creator (Settlor, Settler, Trustor) – person who owns the property or assets that is to be transferred to and held by the trust. 2. Compliance Overseer and Protector – persons who assume oversight of the fiduciary responsibilities of Trustees. 3. Trustee – person who runs the regular operations of the trust. 4. Beneficiary – the person or entity that the trust creator intended to benefit from the trust estate. Beneficiaries have beneficial interest to the property or assets held in the trust.
Scott on Trusts Vol. 1 57.2, Vol 3 349 states that a creator or Settlor may reserve not merely a life interest and a power to revoke the trust in whole or in part and to modify the trust, but also a power to control the trustee in the administration of the trust.
This powerful tool was the catalyst, which our firm employed to copyright our Spendthrift Trust format. Our copyrighted trust document has the office of compliance overseer and protector of the trust. The powers of this position are to protect and direct the affairs of the trust, appoint and/or remove trustee’s, add and/or remove beneficiaries and to ensure that the trustee’s follow the provisions of the trust. The fact that a trustee can be replaced and governed by the Settlor or Creator, not only maintains the protection from judgments and creditors, but also assures the Settlor or Creator that his wishes will be carried out and that a successor will continue to govern and carry out their wishes after he is gone. However, in our copyrighted trust a Settlor may not be a Compliance Overseer.
Beneficiaries can now, for the first time, enjoy the knowledge that they will receive what has been placed in a trust for them, and for the first time they can be assured that their future is not in the hands of a trustee whom they do not relate to or have a personality conflict with. It also assures them that the wishes of the Settlor or Creator will be carried out for their benefit.