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Simple English definitions for legal terms

Spendthrift Clause

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A quick definition of Spendthrift Clause:

A spendthrift clause is a rule that says that money or property in a trust cannot be taken by the person who is supposed to get it or their creditors. The trust usually only gives a little bit of money to the person at a time, so they don't spend it all at once. This is to help people who are not good at managing money. The person who is supposed to get the money cannot be forced to give it to someone else, but if they owe money to someone, that person can take some of the money that the trust gives to the person. Not all states have this rule, and some states have exceptions that let creditors take the money in certain situations.

A more thorough explanation:

A spendthrift clause is a legal term that refers to a clause in a trust that limits the ability of the beneficiary or their creditors to access the assets of the trust. This type of clause is often used to protect the beneficiary from their own financial mismanagement or from the claims of their creditors.

For example, let's say that John creates a trust for his son, Tom, and includes a spendthrift clause. The trust requires the trustee to only give a certain amount of income to Tom each year, and the rest of the assets are held in the trust. If Tom gets into financial trouble and owes money to creditors, they cannot go after the assets in the trust to satisfy the debt.

However, it's important to note that not all states recognize spendthrift trusts, and the rules around them can vary. In some cases, creditors may be able to garnish the payments that the beneficiary receives from the trust, but they cannot access the assets themselves.

Spending power | Spendthrift Trust

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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