Permalink Submitted by Bruce Steiner on Wed, 2013-10-30 23:26
In that case, the trust provided for mandatory distributions. The beneficiary would have been in a better position if distributions were discretionary. Even better would have been if the trustees could have made distributions to the beneficiary or her issue (children, grandchildren, etc.) In any case, in trust is better than outright from a creditor standpoint.
Permalink Submitted by Alan - IRA critic on Tue, 2013-10-29 00:19
Perhaps not. See article here: http://rubinontax.floridatax.com/2006/04/irs-liens-overcome-spendthrift-trust.html
Permalink Submitted by Bruce Steiner on Wed, 2013-10-30 23:26
In that case, the trust provided for mandatory distributions. The beneficiary would have been in a better position if distributions were discretionary. Even better would have been if the trustees could have made distributions to the beneficiary or her issue (children, grandchildren, etc.) In any case, in trust is better than outright from a creditor standpoint.