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Webster's New World Law Dictionary » spendthrift trust
spendthrift trust
spendthrift trust definition - legal
n
Trust
benefiting an individual who is financially irresponsible; grantor of the trust
may establish limitations on use of money to pay debts, or may provide for
direct payment to creditors, completely bypassing the beneficiary. Some states
permit a spendthrift trust to state as part of its terms that creditors may not
invade the trust to satisfy the debts of the beneficiary.Â
Webster's New World Law Dictionary Copyright © 2006 by Wiley Publishing, Inc., Hoboken, New Jersey.
Used by arrangement with John Wiley & Sons, Inc.
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