spendthrift trust Hear it!

spendthrift trust Law Definition

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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.