What is a spendthrift trust?
A spendthrift trust is a special kind of trust that is specifically created for heirs or beneficiaries who are not responsible with managing money. This kind of trust ensures that an inheritance is not wasted. A trustee can manage the money responsibly and use it to provide a benefit to those who are named as beneficiaries. Because the beneficiaries do not actually have access to the trust assets, the assets are also protected from creditors and cannot be lost if the beneficiary gets into debt or goes bankrupt.