Spendthrift Provision

A provision in a trust or last will and testament that restricts a beneficiary’s ability to transfer rights to future payments of income or principal under the trust or will to a third party, and grants the trustee or executor the right not to honor such a pledge. A spendthrift provision also protects a beneficiary from both voluntary and involuntary transfers of his or her beneficial interest, and protects assets from claims of the beneficiary’s creditors.

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Reference: Spendthrift Provision