Spendthrift Trust Background

 

Spendthrift Trusts are not new innovations in the trust formation field. They have been around since the 1530’s. These trusts were first introduced in Europe to protect the estates of nobles and lords from attachment and escheat by creditors of all types so that the estates’ assets could be transferred to the beneficiaries.

Spendthrift Trusts were created and used to prevent courts, creditors, governments, agencies and any operation of law from transferring, levying or gaining access in any way to the assets and monies in these estates. The king and/or queen of the land were the protectors of these estates and the trustees were under the oversight of these majesties so that they could not misuse the business of the trust.
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Over the centuries the Spendthrift Trust has reigned as a very strong and popular type of trust. It has been tested more than any other trust due to the length of time it has existed and is superior to any other type of entity to protect assets and remain free from creditors attaching the assets.