What is a "spendthrift" clause?
Many types of trusts include a spendthrift clause. It's a provision that can prevent trust
funds from being paid to anyone other than the trust's beneficiary. Including a
spendthrift clause in a trust can, for example, prevent a greedy brother-in-law from
getting his hands on assets that you left for your sister. In many cases, it can also keep
the trust's assets away from creditors.