July 14, 2023 / Press
Robert Strauss Speaks to Business Insider About Strategies HNW Individuals Can Employ to Protect Family Fortunes
Robert Strauss was recently quoted in Business Insider’s article “How the ultra-rich use trusts to protect the family fortune if their heirs get sued or divorced,” which examines the use of spendthrift trusts as a defensive strategy against ex-spouses and creditors seeking assets.
The article notes that spendthrift trusts are especially useful in the state of California, where marital property and assets are equally owned and divided. Payments through these types of trusts are at the trustee’s discretion and often granted to multiple beneficiaries, making it difficult for an heir’s ex-spouse to claim entitlement.
Describing a real-life example of his client’s use of a spendthrift trust, Rob shares that, “He never did have to provide his spouse with any benefit from the trust at all.” However, he cautions that it is still risky to serve as both a beneficiary and trustee, as a judge can order disbursements to the plaintiff, in the event of a lawsuit.