Definition from Nolo’s Plain-English Law Dictionary
A provision in a trust that restricts a beneficiary's ability to transfer rights to future payments of income or capital under the trust to a third party. In effect, the clause prevents "spendthrift" beneficiaries from squandering an inheritance before they receive it and it also protects a beneficiary's inheritance from creditors.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:24 pm