spendthrift clause

spendthrift clause definition - business

spendthrift clause

A trust or will provision that disallows claims against trust assets resulting from pledges by the beneficiary in anticipation of receipt of the assets. For example, a beneficiary borrows money using assets held by the trust as collateral that will be transferred to the lender.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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