Estate Planning in Anticipation of Litigation

Spendthrift Trusts, Limited Protection for Deadbeat Beneficiaries. - California law has long recognized a settlor’s right to restrict a beneficiary’s use of trust assets. Restraints on alienation, spendthrift clauses, shutdown clauses and wholly discretionary trusts are a few of the tools settlors may use when creating a trust for the benefit of someone likely to have creditor problems.

The Validity of a trust amendment was at issue in the recent Haggerty v. Thornton opinion from the California Supreme Court, which resolved a split of authority among the California Circuit Courts.

At his presentation to the Sacramento Bar Association, Principal Ryan Szczepanik identifies a variety of tax pitfalls attorneys can fall into when resolving a dispute.