self-settled trust

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Self-settled trust (also called a spendthrift trust) is a type of trust allowed in a small number of states where a person that creates the trust is also the beneficiary of the trust. The assets are permanently in the trust and controlled by the trustee which keeps the assets from the reach of most creditors. When the trust assets can be reached by creditors or to pay taxes varies based on the state or judgment of the court. 

[Last updated in August of 2021 by the Wex Definitions Team