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

See Examples For:

spendthrift trust

A special-needs trust or spendthrift trust can also distribute funds based on need, including medical bills.

From MarketWatch ● Jul. 29, 2026

A “special-needs trust,” for the record, is similar to a spendthrift trust in that it’s also irrevocable and protected against creditors.

From MarketWatch ● Jun. 23, 2026

A spendthrift trust is irrevocable and designed to protect a beneficiary’s inheritance from creditors, civil lawsuits resulting from an alleged $100,000 bank fraud and/or, as importantly, their own financial irresponsibility.

From MarketWatch ● Apr. 16, 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