spendthrift trust
- A fund set up for a beneficiary deemed reckless with finances, where the trustee controls the income and directly pays debts or doles out money as necessary
- Due to his reckless spending habits, his parents created a spendthrift trust to manage his inheritance.
- They used a spendthrift trust to protect their child's future earnings from potential creditors.
- A spendthrift trust was established to minimize the risk of mismanagement of funds by the beneficiary.
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