Question

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 _______________

Answer 1

Richard should go for the Spendthrift Trust if he doesn't want his children to be dependent over the estate.

A spendthrift trust places limitations on the beneficiary’s admittance to the assets positioned in trust. This method of trust is beneficial when the beneficiaries are probable to dissipate the assets placed in trust.

A Totten trust or revocable trust is one where the recipient receives the money in a bank account after the decease of the account holder.

Under a constructive trust, an individual who has partially developed himself is assured to reward the wounded party and thus this term does not suitable into the description of Trust.

A living trust shaped before the decease of a individual to avoid validation and to decrease estate taxes.