spendthrift trust

A spendthrift trust is a type of trust designed to restrict the beneficiary ’s ability to access or control the trust’s principal or income . The beneficiary is unable to sell or give away their equitable interest in the trust property , and the trustee manages the property. This structure ensures that the trust assets are protected from being squandered by the beneficiary, as well as from creditors or legal judgments . As a result, the beneficiary does not have any control over the property , and creditors cannot reach those assets.

[Last reviewed in June of 2024 by the Wex Definitions Team ]

Wex

• PROPERTY
• trusts, inheritances & estates
• wex definitions
• property law