spendthrift trust

Mark Ward

New Member
Jurisdiction
Florida
My father set up a trust in Michigan, the trustee has indicated he wants to close the trust and wants to give a portion of the funds, $35,000, to my 21 year old daughter but I feel it would be best if she received the money at a later age when she's more responsible. My daughter and I live in Florida and I see Florida does not allow spendthrift trusts, can a spendthrift trust be set up in MI for her to benefit from it at a later age even though she's in FL? FYI, the trustee is in his late eighties and I'd like my daughter to receive the funds in maybe 15 years.

Thanks - Mark
 
My father set up a trust in Michigan, the trustee has indicated he wants to close the trust and wants to give a portion of the funds, $35,000, to my 21 year old daughter but I feel it would be best if she received the money at a later age when she's more responsible. My daughter and I live in Florida and I see Florida does not allow spendthrift trusts, can a spendthrift trust be set up in MI for her to benefit from it at a later age even though she's in FL? FYI, the trustee is in his late eighties and I'd like my daughter to receive the funds in maybe 15 years.

Thanks - Mark

As I stated on the other forum that you posted this - this is really a matter between the trustee and your adult daughter.
 
Thanks though. Do you know the answer to my original question?
Why do you believe that the answer to the question is relevant? The TRUSTEE is the one who needs to follow the terms of the trust. If the terms of the trust allow for the trustee to close the trust in this manner, and if they specify that the funds are to be distributed to your daughter when the trust is closed, then you have no input in this matter.
 
The trust specifies that it is up to the trustee to decide who gets the funds and how it's distributed, so consequently the trustee may agree with me and if so my questions remains

so lets say the trustee and my daughter agree, can the funds be put into a spendthrift trust in MI while my daughter is in FL? Thanks
 
Last edited:
The trust specifies that it is up to the trustee to decide who gets the funds and how it's distributed, so consequently the trustee may agree with me and if so my questions remains
Again, this is between the trustee and your adult daughter.
 
My father set up a trust in Michigan

Is your father still alive?

the trustee has indicated he wants to close the trust

I assume the trustee is not your father. Correct? As for the trustee "want[ing] to close the trust," what the trustee "wants" is not particularly relevant. What does the trust say about termination/"closing"?

and wants to give a portion of the funds, $35,000, to my 21 year old daughter

See above re "wants," but why does he "want[] to" do this? Is that what the trust instrument says is supposed to happen when the trust is "closed"?

I feel it would be best if she received the money at a later age when she's more responsible.

No offense, but your feelings on the subject aren't any more relevant than what the trustee "wants."

I see Florida does not allow spendthrift trusts

Where did you get this idea? Based on my own quick googling, this isn't true.

can a spendthrift trust be set up in MI for her to benefit from it at a later age even though she's in FL?

In the abstract world of all that is hypothetical, virtually anything, including this, is possible. However, I don't really see the point of the question. If the trust instrument says that, upon closing, your daughter gets $35k (or if the trust gives the trustee discretion in this regard), then that's all that matters. If this is a discretionary distribution, you're certainly free to try and persuade the trustee not to make the distribution or to make the distribution to a trust that you set up and of which you are the trustee, but it would be entirely the trustee's decision to do or not do what you urge.
 
My father has passed.

The trustee can close the trust at his discretion.

The trustee has the discretion to give my daughter any amount of money he wants thats available.

Yes, I do see now there are options in FL. The original article I read on spendthrift trusts did not include FL in the states listed that accept it.

I understand what I want is irrelevant but I hope the trustee, a family friend all my life, would maybe consider my suggestion but... he is driving the bus, knows it and likes to show it, unfortunately.

Let's say the trustee decides it's in my daughter's best interest to set up a sendthrift trust, would it be set up in MI where the current trust is or in or FL where my daughter lives?

Thanks!
 
Depending on the exact wording of the trust, placing the money in a spendthrift trust without the consent of your daughter may not be an option.
 
Let say it is an option, would it be set up in MI where the current trust is or in or FL where my daughter lives?
It really doesn't matter where it's "set up". I would suggest that it be set up in whatever locale is most convenient for the trustee.
 
Let's say the trustee decides it's in my daughter's best interest to set up a sendthrift trust, would it be set up in MI where the current trust is or in or FL where my daughter lives?

Where is the trustee? If he is in MI and as your father created the trust in MI I can see no reason the spendthrift trust wouldn't be in MI but again that is up to the trustee.

But I agree with the others that have answered all of this is going to depend on the wording of the trust.
 
Let's say the trustee decides it's in my daughter's best interest to set up a sendthrift trust, would it be set up in MI where the current trust is or in or FL where my daughter lives?

Could be either, but I agree with this:

Depending on the exact wording of the trust, placing the money in a spendthrift trust without the consent of your daughter may not be an option.
 
Back
Top