What is a "spendthrift clause"?

A "Spendthrift Clause" is a clause added to a trust to protect assets in that trust from a beneficiary’s creditors or to prevent assignment of an inheritance before it is received. This can include protection from a spouse in divorce.

Example: My dad put a spendthrift clause in his trust so even though I was supposed to get distributions already, the trustee won’t give me any money because I’m in the middle of a nasty divorce and they don’t want it taken from me.

Kelley Scrocca, LLM
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