Spendthrift Trust

Protecting Beneficiaries from Themselves

This is one of the most emotionally honest trusts in the collection. Because sometimes the issue is not "Can I leave money?" — it is "Can this person handle it?" This trust introduces the reality that love and protection sometimes require boundaries.

What it is

A Spendthrift Trust is a trust designed to protect a beneficiary’s inheritance from reckless spending, creditors, lawsuits, or poor financial decisions. Instead of receiving assets outright, the beneficiary receives controlled distributions managed by a trustee.

Why people use them

guard against impulsive spending
create structure around addiction concerns
manage financial immaturity
limit creditor exposure
reduce divorce exposure
protect against outside influence

Biggest myth

“This means I don’t trust my child.”

Not necessarily. Many parents use Spendthrift Trusts simply to create guardrails around inherited wealth. The trust can provide support while still protecting the larger inheritance long term.

Who this trust is good for

Families with young adult children
Families with addiction concerns
High-net-worth families
Parents worried about financial discipline
Beneficiaries vulnerable to lawsuits or divorce

The Deeper Idea

A Spendthrift Trust is often about balancing generosity, protection, and realism.

Conversations We’re Having About This Trust

“What if your child is terrible with money?”

“The trust designed for chaos.”

“Can a trust protect an inheritance from creditors?”

Asset Protection Trust

Building the Wall Before the Storm

II.3

Irrevocable Trust

The Power of Letting Go

II.4

Domestic Asset Protection Trust (DAPT)

The Self-Protective Trust

II.5

Spousal Lifetime Access Trust (SLAT)

Protection Through Partnership

Browse All Eight Categories

Schedule a Complimentary 30-Minute Consultation

At Hurwitz.Law, we believe that thoughtful planning begins with a meaningful conversation.

We offer a private, 30-minute consultation—by phone or Zoom—for individuals and families considering estate planning, elder law, or trust administration services. This conversation allows us to understand your goals, answer your questions, and help determine whether our firm is the right fit for your needs.

Our firm is intentionally boutique. We work with a limited number of clients so that we can provide a high level of personal attention and care. If we’re not the right fit, we’ll do our best to point you in the right direction.

This consultation is not a sales pitch. It’s a conversation rooted in clarity, respect, and the belief that your time—and your legacy—deserve both.

Schedule a Consultation

Prefer to talk first? Call us at (215) 967-7890.