Richard is wealthy and has three teenage children who all have after-school jobs. He wants to ensure that if he dies they will continue to work and will not become dependent on his estate. If he decides to set up a trust, the best kind to accomplish his goals would be:???
1. Totten Trust
2. Constructive trust
3. Living Trust
4. Spendthrift Trust
Answer : 4. Spendthrift Trust
Explanation
Let us understand the meaning of spendthrift trust . This is a trust that is created for the benefit of a person that gives an independent trustee full authority to make decisions as to how the trust funds may be spent for the benefit of all the beneficiary.
Generally this kind of trust supply the beneficiary with “necessaries” (usually food and shelter, but sometimes clothing and transportation, if these are not extravagant). Most jurisdictions also permit the creation of spendthrift trust assets to satisfy awards of Child support and alimony
So here in this case Spendthrift Trust is best fit for to accomplish his goals of all his three children
