Asked by Sydney Henke on May 17, 2024
Verified
Which of the following is true of a spendthrift trust?
A) The settlor can make himself the beneficiary.
B) It restricts the voluntary transfer of a beneficiary's interest.
C) Assignees can claim rights to it.
D) Creditors can claim rights to it.
Spendthrift Trust
A trust designed to prevent beneficiaries from squandering their inheritance by controlling the distribution of assets.
Beneficiary Interest
Refers to the rights or advantages accruing to a beneficiary, generally in the context of trusts or estates.
Voluntary Transfer
The act of giving or transferring ownership of property or a title willingly from one party to another without coercion.
- Explore the different types of trusts and their particular intentions, such as express, spendthrift, and resulting trusts.
Verified Answer
GG
Grace GreenMay 20, 2024
Final Answer :
B
Explanation :
A spendthrift trust restricts the voluntary or involuntary transfer of a beneficiary's interest.
Learning Objectives
- Explore the different types of trusts and their particular intentions, such as express, spendthrift, and resulting trusts.