Skip to content
Alper Law
  • Home
  • Learn MoreExpand
    • Asset ProtectionExpand
      • Asset Protection Guide
      • Annuities
      • Asset Protection Trust
      • Bank Account Protection
      • Car Accidents
      • Doctors
      • Equity Stripping
      • Exemptions
      • Florida Residency
      • Fraudulent Transfers
      • Homestead Protection
      • How Attorneys Help
      • Strategies
      • Tenants By Entireties
      • UTMA Accounts
    • Business PlanningExpand
      • Business Entities
      • LLCs
      • LLC Operating Agreement
      • Real Estate Investors
    • Offshore PlanningExpand
      • Nevis LLC
      • Offshore Bank Accounts
      • Offshore Planning
      • Offshore Trusts
    • Judgment CollectionExpand
      • Judgment Collection
      • Bitcoin and Cryptocurrency
      • Deficiency Judgments
      • Fact Information Sheet
      • Head of Household
      • IRS Tax Debt
      • Not Paying Judgments
      • Statute of Limitations
      • Wage Garnishment
      • Writ of Garnishment
    • Wills and TrustsExpand
      • Avoiding Probate
      • Estate Planning
      • Gun Trusts
      • Inheritance Tax
      • Irrevocable Trusts
      • Last Will and Testament
      • Living Trusts
      • Living Will
      • LGBT Estate Planning
      • Power of Attorney
      • Probate
      • Special Needs Trust
      • Trust Administration
    • BankruptcyExpand
      • Attorney Fees
      • Chapter 7 Bankruptcy
      • Chapter 13 Bankruptcy
      • Dealing With Creditors
      • Involuntary Bankruptcy
      • Moral Issues
      • Orlando Bankruptcy
    • Real EstateExpand
      • Lady Bird Deed
      • Land Trusts
      • Quit Claim Deed
      • Warranty Deed
    • AdoptionExpand
      • Grandparent and Relative Adoption
      • Readoption
      • Same-Sex Couples
      • Stepparent Adoption
  • Blog
  • AttorneysExpand
    • Gideon Alper
    • Jon Alper
Phone 407-444-0404
Contact Us
Book a Consultation (Phone or Zoom)
Search
Book a Phone or Zoom Consultation
Florida asset protection, garnishment, estate planning, and adoption law firm — Alper Law
Phone 407-444-0404

Home » Asset Protection » Spendthrift Trusts And Discretionary Trusts Discussed In Florida Bar Journal

Spendthrift Trusts And Discretionary Trusts Discussed In Florida Bar Journal

ByJon Alper April 26, 2012May 22, 2020

There is an interesting asset protection related article in the  March edition of the Florida Bar Journal (that’s a professional magazine which the Florida Bar distributes to Florida attorneys). The article discussed and compared asset protection of spendthrift trusts and discretionary trust; most people don’t know theirs is a difference between the two trusts.

Most people are familiar with a spendthrift trust provision. A spendthrift provision states that a beneficiary my not voluntarily, or involuntarily, assign or pledge his future interest in trust assets or income. Most of my clients, and most attorneys, understand that a beneficiary’s interest in a spendthrift trust is protected from the beneficiary’s creditors, in and out of bankruptcy. Florida has a spendthrift trust statute (recently drafted in 2006) which defines a spendthrift trusts, tells us how to draft a spendthrift trust provision in a trust agreement, and provides that the beneficiary’s interest is an exempt asset.

  A discretionary trust provision gives the trustee the discretion to assign and/or distribute trust income to and among trust beneficiaries. There is another Florida statute dealing with a creditor’s right to attack a debtor’s beneficial interest in a discretionary trust. The statute says that a creditor cannot compel a trustee to make discretionary distributions to or for the debtor’s benefit, nor can the creditor attach the debtor’s right to receive future discretionary distributions.

There is potential confusion for two reasons. First of all, many estate planning trust contain both discretionary distribution provisions and a spendthrift clause. Second, the term “spendthrift trust” is better known and understood than “discretionary trust” so some people use the term spendthrift trust to refer to an “asset protected trust” generally without distinguishing discretionary trustee protections.

 A beneficiary’s trust interest is protected for either reason whether or not the beneficiary understands the technical distinction. There are reasons discussed in the Journal article why the difference may be importantly legally in some cases.

Last updated on May 22, 2020

People also read about…

  • Florida Asset Protection: a Guide to Planning, Exemptions, and Strategies
  • Homestead Exemption Law
  • Tenancy by Entireties Ownership in Florida
  • Florida Debt Collection Laws
  • Florida Exemptions from Creditors
Jon Alper

About the Author

Jon Alper is an expert in asset protection planning for individuals and small businesses.

Book a consultation with Jon.
Jon Alper

About the Author

Jon Alper is an expert in asset protection planning for individuals and small businesses.

Book a consultation with Jon.

Get the latest blog posts by email.

Looking for help?

Schedule a phone or Zoom consultation to review your specific situation. We help clients throughout the state of Florida.

Schedule Consultation

© 2022 Alper Law, PLLC
(407) 444-0404

255 Primera Blvd. #160
Lake Mary, FL 32746
  • Disclaimer
  • Privacy Policy
Facebook Twitter Linkedin
Scroll to top
Contact Us
Search
  • Home
  • Learn More
    • Asset Protection
      • Asset Protection Guide
      • Annuities
      • Asset Protection Trust
      • Bank Account Protection
      • Car Accidents
      • Doctors
      • Equity Stripping
      • Exemptions
      • Florida Residency
      • Fraudulent Transfers
      • Homestead Protection
      • How Attorneys Help
      • Strategies
      • Tenants By Entireties
      • UTMA Accounts
    • Business Planning
      • Business Entities
      • LLCs
      • LLC Operating Agreement
      • Real Estate Investors
    • Offshore Planning
      • Nevis LLC
      • Offshore Bank Accounts
      • Offshore Planning
      • Offshore Trusts
    • Judgment Collection
      • Judgment Collection
      • Bitcoin and Cryptocurrency
      • Deficiency Judgments
      • Fact Information Sheet
      • Head of Household
      • IRS Tax Debt
      • Not Paying Judgments
      • Statute of Limitations
      • Wage Garnishment
      • Writ of Garnishment
    • Wills and Trusts
      • Avoiding Probate
      • Estate Planning
      • Gun Trusts
      • Inheritance Tax
      • Irrevocable Trusts
      • Last Will and Testament
      • Living Trusts
      • Living Will
      • LGBT Estate Planning
      • Power of Attorney
      • Probate
      • Special Needs Trust
      • Trust Administration
    • Bankruptcy
      • Attorney Fees
      • Chapter 7 Bankruptcy
      • Chapter 13 Bankruptcy
      • Dealing With Creditors
      • Involuntary Bankruptcy
      • Moral Issues
      • Orlando Bankruptcy
    • Real Estate
      • Lady Bird Deed
      • Land Trusts
      • Quit Claim Deed
      • Warranty Deed
    • Adoption
      • Grandparent and Relative Adoption
      • Readoption
      • Same-Sex Couples
      • Stepparent Adoption
  • Blog
  • Attorneys
    • Gideon Alper
    • Jon Alper