What is a spendthrift trust clause?
A spendthrift trust clause is a legal provision that is included in a trust agreement which protects the inherited assets from being spent by the beneficiary until the trustor allows it. This clause prohibits the beneficiary from selling, pledging, or otherwise disposing of the assets that have been transferred into the trust. The purpose of this clause is to ensure that the assets will be used for the designated purpose and that the beneficiary will not become spendthrift. In Florida, the spendthrift trust clause is usually included in trusts created by a parent or grandparent for the benefit of their child or grandchild, but it can also be used in other types of trusts. The clause ensures that the assets will remain in the trust and will not be dissipated by the beneficiary, as well as protecting it from creditors. Therefore, a spendthrift trust clause is a legal provision which allows for the protection of inherited assets in a trust and prevents the beneficiary from misusing them. It allows the trustor to be sure that the assets will be used as intended and not carelessly spent by the beneficiary.
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