Yes A Spendthrift Provisions Can Protect Against Civil Judgments
What is a Spendthrift Provision? One of the best forms of asset protection we can provide is through a trust that contains a spendthrift provision. In a revocable trust, a spendthrift provision has some significant benefits such as protection against your beneficiaries’ creditors.
So what exactly does a spendthrift provision do? A spendthrift provision is a provision within a revocable or irrevocable trust that limits the beneficiary’s access to trust. This restriction protects the trust property in two ways, it prevents a beneficiary from selling his or her interest in the trust property as a beneficiary, and it prevents the beneficiary’s creditors from compelling the trustee to make distributions except where this would void public policy like in the case of alimony, child support and some civil judgements.
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