The purpose of a SPA Trust is to protect assets from a person's potential future liabilities by removing the assets from the person's legal ownership.
The SPA Trust is built upon the following legal principles: 1.
With respect to an irrevocable trust, a creditor of the settlor may reach the maximum amount that can be distributed to or for the settlor's benefit.
A settlor can retain a special power of appointment without subjecting the trust to the claims of creditors.
The SPA Trust is a sophisticated and highly technical legal agreement and its effectiveness in accomplishing any particular purpose will depend upon the expertise of those who create it and the circumstances of each particular case.