The Spendthrift - Case Study

Maurice had always struggled with managing his finances. He often lived paycheck to paycheck despite having a good job. His parents had tried to help him over the years, but nothing seemed to stick. So, when they passed away, they left Maurice an inheritance in a discretionary trust, managed by First Covenant Trust.

At first, Maurice was disappointed. He had hoped to receive the inheritance outright, so he could spend it as he pleased. But as he learned more about the trust, he realized that it was actually a real benefit to him. The trustee was there to help him manage the inherited wealth, making sure that he didn’t blow through it too quickly or make costly mistakes. Over time, Maurice began to appreciate the value of the trust. He saw how it provided him with a safety net, ensuring that he had a cushion of money to fall back on if he ever needed it. He also saw how it helped him to develop better financial habits. First Covenant provided for financial counseling, where his spending patterns were reviewed and a budget created. As a result of the trust, Maurice’s financial situation has remained more steady. He has been able to pay off his debts, and begun build up a nest egg. He has developed a greater sense of responsibility and discipline when it comes to money.

The discretionary trust was a true gift from his parents. It has given him the support and guidance he needed to get his financial life on track. He knew that his parents would be proud of the progress he has made and is committed, with the help of the First Covenant, to continuing to manage his finances responsibly.