Spendthrift Provision

A Spendthrift Provision is specific to trust planning. The Spendthrift Provision states that the creditors of any beneficiary cannot pay themselves back directly from the assets held in trust. Instead, they must wait until the beneficiary receives a distribution and then go after the beneficiary personally. In other words, if a beneficiary owes someone else money, that someone else cannot go after the assets held in trust for the beneficiary.