Beneficiary-Controlled Trusts

clprotected, (2) creditor protected and (3) divorce
Estate planners use trusts to protect beneficiariesprotected – while at the same time allowing
from their inability, their disability, their creditors and theirthe primary beneficiary to control the trust as a
predators. Included under “creditors”co-trustee. In essence, the primary beneficiary has
are the IRS and divorced spouses. Most traditionalnearly all the rights, benefits and control over the trust
trusts distribute the assets when the beneficiaryproperty that a person would have with outright
reaches a certain age or ages, with the last distributionownership – in addition to tax, creditor and
terminating the trust.divorce protection not available with outright ownership.
More sophisticated estate planners generally createSuch trusts are sometimes referred to as
multi-generational dynasty trusts for their“beneficiary-controlled” trusts.
clients’ descendants that are (1) estate tax