Spendthrift Trust Administration

Protecting Beneficiaries. Preserving Assets.

Spendthrift trusts are designed to protect assets from being misused or prematurely depleted—especially when a beneficiary may not be ready or able to manage funds responsibly. At South County Fiduciary Services, we administer spendthrift trusts with the same diligence and care we apply to all fiduciary responsibilities, ensuring that the grantor’s intentions are honored while the beneficiary’s long-term interests remain safeguarded.

What Is a Spendthrift Trust?

A spendthrift trust is a type of irrevocable trust that restricts a beneficiary’s access to trust principal or income. This structure helps protect the assets from creditors, lawsuits, or poor financial decisions made by the beneficiary. The trustee—often a professional fiduciary—is granted discretion to manage distributions based on the beneficiary’s needs and the terms of the trust.

When Are Spendthrift Trusts Appropriate?

Spendthrift trusts are commonly used when:

• A beneficiary has a history of financial instability 
• There are concerns about substance abuse, gambling, or other vulnerabilities 
• Asset protection is a priority (e.g., shielding from creditors or divorce settlements) 
• The grantor wants to provide for a beneficiary over time, rather than in a lump sum
   

Our Role as Trustee

At South County Fiduciary Services, we act with impartiality, care, and accountability. 

Our responsibilities include:

• Managing trust investments prudently
• Making thoughtful, need-based distributions 
• Communicating with beneficiaries and related parties 
• Maintaining accurate records and preparing required accountings 
• Coordinating with tax professionals, attorneys, and care providers as needed
   

Balancing Compassion with Boundaries

Administering a spendthrift trust often means walking a careful line between supporting the beneficiary and upholding the trust’s protective purpose. We understand the sensitivities involved and approach each situation with respect, discretion, and a commitment to long-term stability.