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Tips From The Pros: The Trust Spendthrift Provision —Does it Really Protect?

Al W. King III discusses why some jurisdictions have enacted discretionary support statutes.

Most jurisdictions offer some form of asset protection for both self-settled and third-party trusts through the incorporation of spendthrift provisions. In fact, traditional asset protection has typically relied on the spendthrift clause.1 But, there’s been recent precedent to suggest certain exception creditors may pierce the spendthrift. Consequently, many states have uniquely addressed the potential issues with the spendthrift clause by enacting discretionary support

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