spendthrift trust

American  

noun

Law.

1. a trust that provides a fund for a beneficiary, as a minor, with the title vested so that the fund or its income cannot be claimed by others, as creditors of the beneficiary.

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Example Sentences

A special-needs trust is similar to a spendthrift trust in that it’s also irrevocable and protected against creditors.

From MarketWatch • Apr. 16, 2026

When it became clear mom was nearing the end of her life, I suggested she set up a spendthrift trust to protect his inheritance.

From MarketWatch • Mar. 3, 2026

“With a spendthrift trust, creditors and lawsuits cannot access the funds, and your child cannot demand early payouts. Instead, the trustee manages distributions based on your specified terms.”

From MarketWatch • Feb. 18, 2026

A spendthrift trust “prevents your child from selling, borrowing against, or misusing their inheritance,” Cote says.

From MarketWatch • Feb. 18, 2026

While you can’t ensure he’ll be 100 percent responsible if he inherits your assets, you can help him get there by setting up a spendthrift trust.

From Slate • Mar. 31, 2023