Bob creates a irrevocable trust for the benefit of his three children, Jorge, Maria, and Luis.

Bob creates a irrevocable trust for the benefit of his three children, Jorge, Maria, and Luis. Bob created this trust to ensure that his children had supplemental income and could pay their basic bills. Bob puts 10 million dollars into the trust and requires the trustee to pay $2000 a month to each beneficiary, meaning each month the trust will pay out $6000 for the benefit of his children. Bob asks his niece Jordana to be trustee of the trust, since she is a financial planner. She agrees. Over the first five years of the trust, Jordana pays the children money every month. However, Jorge has begun to get in a bit of debt and creditors start requesting he pay his debts. One specific creditor reached out to Jordana to pay Jorge’s debt of $4000. Jordana is really concerned that creditor will put a lien on the trust and then Jordana could not pay Jorge his monthly allotment and potentially put trust res at risk.

Jordana has come to you to seek your advice. Jordana wants to know if she can move this trust into a discretionary trust or spendthrift trust for the benefit of all the beneficiaries. What advice would you give her? What other information would you need to know to help you come to a conclusion here?