Wills, Trusts, and Estates

Spendthrift Trust

A spendthrift trust is one where the beneficiary is prohibited from transferring or otherwise alienating his beneficial interest voluntarily or involuntarily. UTC § 502.

Because the interest cannot be transferred, a creditor cannot get the trust assets until the beneficiary actually gets the money. He cannot attached to the trust with a Drogo order.

Every trust should have a spendthrift provision.

A spendthrift provision cannot be enforced against child support or alimony. UTC § 503.