spendthrift trusts

A spendthrift trust is a legal arrangement designed to protect a person's assets from their creditors and prevent the beneficiary from reckless spending. When assets are placed in this trust, the beneficiary receives income or support but cannot sell, pledge, or access the principal directly. The trust’s terms restrict the beneficiary's ability to waste or lose the assets, ensuring they are preserved for their intended purpose or future needs. This setup helps protect the assets from debts or poor financial decisions, while still providing support to the beneficiary.