Spendthrift Trust definition:
US law: a trust which in design prevents a beneficiary from depleting the trust funds, or from his creditors demanding payment therefrom.
Related Terms: Discretionary Trust, Sprinkling Trust ...
Spendthrift trust - A trust set up for the benefit of someone who the grantor believes would be incapable of managing his or her own financial affairs.
SPENDTHRIFT TRUST: A trust designed to keep money out of the hands of creditors. Often established to protect someone who is incapable of managing his or her financial affairs.
Spendthrift trust
Definition
: a trust that is created for the benefit of a spendthrift who is paid income therefrom and that cannot be reached by creditors to satisfy the spendthrift's debts
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Now, most pension plans have the same protection as an ERISA anti-alienation clause giving these pensions the same protection as a spendthrift trust. The only remaining unprotected areas are the SIMPLE IRA and the SEP IRA.
 See also: Spendthrift, Trust, Information, Law, Trustee
  
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