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 California, a spendthrift trust is a legal tool that allows a grantor to place restrictions on a beneficiary's access to trust assets, with the aim of protecting those assets from the beneficiary's potential imprudence or from their creditors. Under California law, specifically the California Probate Code, spendthrift provisions are recognized and enforceable. These provisions prevent the beneficiary from transferring their interest in the trust, either voluntarily or involuntarily, thus safeguarding the assets from most of the beneficiary's creditors. However, there are exceptions where creditors can still access trust assets, such as for child support, spousal support, or if the beneficiary is the settlor and retains certain powers or benefits that creditors can reach. It's important to note that while spendthrift trusts offer protection, they must be carefully structured to comply with state laws and to ensure that the intended protections are effective.