Spendthrift Trust Attorney in Santa Clarita, CA
A spendthrift trust restricts a beneficiary’s ability to assign, sell, or pledge their interest in the trust, and generally shields trust assets from the beneficiary’s creditors before distribution. It’s often used when a family wants to leave an inheritance to someone — whether due to age, financial inexperience, creditor risk, or simply family preference — without handing over full, immediate control of a lump sum.
Key Points
- The trustee, not the beneficiary, controls timing and amount of distributions
- Creditors generally cannot reach trust assets before they’re distributed to the beneficiary
- Distribution terms can be tailored — age-based milestones, specific purposes (education, housing), or trustee discretion
- Can be built into a larger estate plan rather than standing alone
Considerations
- Once assets are distributed out of the trust to the beneficiary, spendthrift protection no longer applies to those funds
- The trustee selected matters significantly, since they exercise real discretion over distributions
- This is different from asset protection trusts designed to protect the GRANTOR’s own assets — a spendthrift provision protects a beneficiary’s interest
California Law Note
California law (Probate Code § 15300 et seq.) recognizes spendthrift provisions but with some limits — for example, certain creditors (such as for child or spousal support) may still be able to reach trust distributions under specific circumstances.
Related Questions
What happens at a free consultation?
We’ll talk through your family situation, your assets, and what you’re trying to accomplish — avoiding probate, providing for minor children, protecting a beneficiary, planning for incapacity, or something else. From there, we’ll explain which documents and strategies fit your situation and what the process and cost would look like. There’s no obligation to move forward afterward.
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