spendthrift trust

spendthrift trust
spendthrift trust see trust

Merriam-Webster’s Dictionary of Law. . 1996.

spendthrift trust
n.
A trust set up to safeguard the funds of someone who would be expected to waste them by restricting the beneficiary’s access to money and placing it out of the reach of creditors.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.


spendthrift trust
A trust created for a beneficiary who may be irresponsible with money. The trustee keeps control of the trust income, doling out money to the beneficiary as needed, and sometimes paying third parties (creditors, for example) on the beneficiary's behalf, bypassing the beneficiary completely. Spendthrift trusts typically contain a provision prohibiting creditors from seizing the trust fund to satisfy the beneficiary's debts. These trusts are legal in most states. (See also: property control trust)
Category: Wills, Trusts & Estates → Living Trusts & Avoiding Probate

Nolo’s Plain-English Law Dictionary. . 2009.


spendthrift trust
n. Trust benefiting an individual who is financially irresponsible; grantor of the trust may establish limitations on use of money to pay debts, or may provide for direct payment to creditors, completely bypassing the beneficiary. Some states permit a spendthrift trust to state as part of its terms that creditors may not invade the trust to satisfy the debts of the beneficiary.

Webster's New World Law Dictionary. . 2000.


spendthrift trust
An arrangement whereby one person sets aside property for the benefit of another in which, either because of a direction of the settlor (one who creates a trust) or because of statute, the beneficiary (one who profits from the act of another) is unable to transfer his or her right to future payments of income or capital, and his or her creditors are unable to subject the beneficiary's interest to the payment of his or her debts.

Dictionary from West's Encyclopedia of American Law. 2005.


spendthrift trust
I
An arrangement whereby one person sets aside property for the benefit of another in which, either because of a direction of the settlor (one who creates a trust) or because of statute, the beneficiary (one who profits from the act of another) is unable to transfer his or her right to future payments of income or capital, and his or her creditors are unable to subject the beneficiary's interest to the payment of his or her debts.
 II A trust set up for the benefit of someone who the grantor believes would be incapable of managing his or her own financial affairs.

Short Dictionary of (mostly American) Legal Terms and Abbreviations.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • spendthrift trust — A trust with restrictions on alienation designed to protect the fund from dissipation by the beneficiary or seizure by the beneficiary s creditors (SA Bankruptcy.com) United Glossary of Bankruptcy Terms 2012 …   Glossary of Bankruptcy

  • Spendthrift trust — A spendthrift trust is a trust that is created for the benefit of a person (often because he or she is unable to control spending) that gives an independent trustee full authority to make decisions as to how the trust funds may be spent for the… …   Wikipedia

  • spendthrift trust — A trust created to provide a fund for the maintenance of a beneficiary and at the same time to secure the fund against his improvidence or incapacity; provisions against alienation of the trust fund by the voluntary act of the beneficiary or by… …   Black's law dictionary

  • spendthrift trust — noun a trust created to maintain a beneficiary but to be secure against the beneficiary s improvidence • Hypernyms: ↑trust * * * noun : a trust created to provide a fund for the maintenance of another and to secure it (as by withholding from him… …   Useful english dictionary

  • spendthrift trust — noun A trust that is created for the benefit of a person (often because that beneficiary is unable to control spending) that gives an independent trustee full authority to make decisions as to how the trust funds may be spent for the benefit of… …   Wiktionary

  • spendthrift trust — A trust created to provide a fund for the maintenance of the beneficiary which shall be secure against his improvidence or incapacity. Huestis v Manley, 110 Vt 413, 8 A2d 644. A trust which restrains either voluntary or involuntary alienation by… …   Ballentine's law dictionary

  • spendthrift trust — Law. a trust that provides a fund for a beneficiary, as a minor, with the title vested so that the fund or its income cannot be claimed by others, as creditors of the beneficiary. Also called sheltering trust. * * * …   Universalium

  • trust — n 1 a: a fiduciary relationship in which one party holds legal title to another s property for the benefit of a party who holds equitable title to the property b: an entity resulting from the establishment of such a relationship see also… …   Law dictionary

  • spendthrift — spend·thrift 1 / spend ˌthrift/ n: a person who spends money foolishly, profusely, or wastefully spendthrift 2 adj 1: of, relating to, or being a spendthrift 2: of or relating to a spendthrift trust Merriam Webster’s Dictionary of Law. M …   Law dictionary

  • trust — A legal entity created by a grantor for the benefit of designated beneficiaries under the laws of the state and the valid trust instrument. The trustee holds a fiduciary responsibility to manage the trust s corpus assets and income for the… …   Black's law dictionary

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”