It is very common in California to create trusts, mostly because probate fees are very high here and it takes a long time for a probate estate to close. People sometimes have the mistaken impression that trusts are only for “trust fund babies”, but they are a very common way for parents to plan for their minor kids. So, I typically do a trust for 98% of my clients. I have found that inserting a “spendthrift clause” into the language of a trust or will is a good way for my clients to prevent their funds from going to third parties.  How does it work in the real world? Well, if the beneficiary pledged those anticipated monies as security on a future investment, a spendthrift clause prevents a prospective beneficiary from turning over money to a third party.  Another scenario could be that the child (beneficiary of the trust) is getting a distribution at the age of 30 and is in the middle of a divorce or a lawsuit, or the IRS is going after them.  By law, the trustee in charge of the trust must ignore any demand for payment.  Because the money can only go to the beneficiary and not to anyone else, instead of making a distribution to the child, the trustee can withhold the distribution until their legal matters have been resolved.  Inserting a spendthrift clause helps ensure my client’s child will be the recipient of their trust money, and not the child’s ex-spouse or creditors. If you need advice about trusts, wills and estate planning, I have the expertise to help you steer clear of problems.  If you would like to discuss spendthrift clauses, any other will or trust issues, or if you have estate planning questions, please contact us at 818.956.9200. Glendale Location 616 E. Glenoaks Boulevard, Suite 203 Glendale, CA 91207 Sherman Oaks Location 15303 Ventura Boulevard, Suite 900 Sherman Oaks, CA 91403