Spendthrift clause

{
  "id": "MLC-T-LAW-004635",
  "term": "Spendthrift clause",
  "field": "Law",
  "definition": "A provision in a trust document that restricts a beneficiary's ability to assign or transfer their interest in the trust's income or principal, and protects those assets from the beneficiary's creditors. This clause prevents creditors from reaching the trust funds to satisfy debts. It is designed to protect beneficiaries who may be financially irresponsible or vulnerable to external pressures.",
  "url": "https://mlchart.com/terminology/law/spendthrift-clause/"
}