What is a spendthrift trust?
A spendthrift trust protects assets from a beneficiary’s creditors and poor spending.
Why it matters
It lets a trustee control distributions instead of handing lump sums.
Common confusion
It shields the beneficiary’s interest; the beneficiary cannot pledge it.
Frequently Asked Questions
Can creditors reach the trust?
Generally no, while assets stay in the trust.
Who decides distributions?
The trustee, per the trust’s standards.
Can the beneficiary demand the money?
Not if the trust gives the trustee discretion.