Which of the following is a potential benefit of a third-party self-settled trust?

A third-party self-settled trust can provide significant benefits, particularly in the area of asset protection while still allowing the settlor to retain some benefits. This type of trust is created by a third party to benefit the individual who establishes it (the settlor) while also protecting their assets from creditors or legal claims.

The key aspect is that although the settlor establishes the trust and may have certain benefits, they do not have complete control over the assets. This division helps shield assets from being seized or claimed in the event of lawsuits or creditor actions. For example, a settlor may benefit from the income generated by the trust assets while the principal remains protected.

This ensures that individuals can safeguard their funds while also maintaining a degree of access to the benefits provided through the trust, such as income distributions, which can be critical for individuals who may require financial assistance but wish to maintain their eligibility for certain governmental benefits or protections.

Other choices do not accurately reflect the purpose and functionality of a third-party self-settled trust. For instance, while reducing administrative fees may be an advantage in some contexts, it is not a primary advantage associated specifically with third-party self-settled trusts. Immediate access to trust funds by beneficiaries, on the other