Definitions for "Spendthrift trust"
Related Terms:
Spendthrift provision, Successor trustee, Revocable living trust, Trust, Inter-vivos trust, Living trust, Irrevocable trust, Discretionary trust, Blind trust, Trusts, Irrevocable living trust, Revocable trust, Testamentary trust, Settlor, Trustees, Pour-over will, Inter vivos trust, Testamentary trustee, Asset protection trust, Residuary beneficiary, Distributee, Remainderman, Trustee, Decedent, Bypass trust, Remainder beneficiary, Heirs, Testamentary, Qualified terminable interest property trust, Bequest, Qtip trust, Residuary, Qualified personal residence trust, Inter vivos, Revocable, Disclaimer trust, Marital trust, Probate estate, Ancillary probate, Heir, Bare trust, Qprt, Ab trust, Crummey power, Grat, By-pass trust, Intestacy, Residuary estate, Power of appointment, Administration
A trust set up for the benefit of a person that the creator of the trust believes would be incapable of managing his or her own financial affairs.
A trust that says that the beneficiary cannot give away or sell their part of the trust. This means that creditors cannot take money from the trust.
A trust that provides a fund for the maintenance of a beneficiary, which by its terms shelters the beneficiary's interest from the beneficiary's incapacity, and the claims of the beneficiary's creditors.
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.
a trust created to maintain a beneficiary but to be secure against the beneficiary's improvidence
a device that insulates a beneficiary from his creditors
an irrevocable trust created for the benefit of the beneficiary (Libby)
a trust created for a beneficiary who lacks the capacity to manage the assets
a trust that, by its terms, cannot be taken by the creditors of a trust beneficiary
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.
A trust set up for the benefit of someone who the grantor believes would be incapable of managing his or her own financial affairs.
Trust set up for benefit of someone whom grantor believes would be incapable of managing his/her own financial affairs, and to keep money out of hands of creditors.
A trust that is created with certain provisions that prevent the beneficiary from selling or mortgaging his interest in the trust.
A trust created for a beneficiary the grantor considers irresponsible about money. The trustee keeps control of the trust income, doling out money to the beneficiary as needed, and sometimes paying third parties (creditors, for example) on the beneficiary's behalf, bypassing the beneficiary completely. Spendthrift trusts typically contain a provision prohibiting creditors from seizing the trust fund to satisfy the beneficiary's debts. These trusts are legal in most states, even though creditors hate them.
A spendthrift trust is a trust that is created for the benefit of a person (often because he or she is unable to control spending) that gives an independent trustee full authority to make decisions as to how the trust funds may be spent for the benefit of the beneficiary. Creditors of the beneficiary generally cannot reach the funds in the trust, and the funds are not actually under the control of the beneficiary.