A spendthrift trust is a trust in which the person who makes the trust and places property or assets in it (the grantor, settlor, or trustor) includes a provision that prohibits the beneficiary’s interest in the trust from being assigned to another person or entity—whether as a gift or as collateral for a loan or debt—and prevents a creditor from reaching or attaching the beneficiary’s interest in the trust.

A spendthrift is a person who spends money wastefully or foolishly and a spendthrift provision in a trust (a spendthrift trust) is designed to preserve the trust’s assets and protect the beneficiary from the beneficiary’s spendthrift ways.

In Alaska, a spendthrift trust is a legal tool that allows a grantor to place assets in a trust with specific provisions that protect the trust's assets from the beneficiaries' potential creditors and from the beneficiaries themselves if they are not financially prudent. Under Alaska law, spendthrift provisions are recognized and enforceable. These provisions prevent the beneficiary's interest in the trust from being voluntarily or involuntarily transferred to others, including creditors. Alaska Statutes specifically allow for the creation of spendthrift trusts, and the state has favorable laws for trust creation, including provisions that may protect trust assets from future creditors and allow for long-term asset protection. It's important to note that while spendthrift trusts offer protection against most creditors, certain exceptions exist, such as claims for child support, alimony, or other specific types of creditors as defined by law.