What kind of trust is created to puts assets out of reach of creditors of a beneficiary?

Question

Quizplus · Accepted Answer

A spendthrift trust is specifically designed to protect assets from the creditors of the beneficiary. The trust appoints a trustee to handle the beneficiary's assets and distribute them according to the terms of the trust. This allows the beneficiary to enjoy the benefits of the assets without being able to access them directly, therefore protecting them from creditors. QTIP trusts are designed for estate planning purposes, special needs trusts are for individuals with disabilities, and charitable trusts are designed to support charitable organizations. A spendthrift trust is designed to protect assets from the creditors of a beneficiary. The trust places restrictions on when and how the beneficiary can access the funds, which prevents creditors from seizing the assets to satisfy debts. QTIP trusts are used for marital planning, special needs trusts are designed to provide for individuals with disabilities, and charitable trusts are used for philanthropic purposes.

What Kind of Trust Is Created to Puts Assets Out