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What Is a Spendthrift Trust?
Budgeting and Financial Planning

What Is a Spendthrift Trust?

Rodney Brooks
|
July 23, 2023

You may want to take care of your children in your will but suspect that they would blow through their inheritance in just a few years. That’s when a spendthrift trust comes in handy. Also called a spendthrift provision, this type of trust has restrictions that protect heirs from both themselves and potential creditors.

What Is a Spendthrift Trust?

A spendthrift trust allows you to leave funds to a beneficiary without giving full control over those funds. Instead, an independent trustee is given the authority to distribute funds for the benefit of a beneficiary.

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Hello, I'm

Rodney Brooks

An award-winning journalist, writer and author and my specialty is retirement planning and other personal finance issues. I have written for many national publications, including USA TODAY, The Washington Post, U.S. News & World Report, AARP and National Geographic. I am available to speak on personal finance, financial literacy and the racial wealth gap.

 

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