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 Hawaii, a spendthrift trust is a legal arrangement that allows a grantor to place assets in a trust with specific provisions that prevent the beneficiary from squandering the trust's assets. Hawaii statutes recognize the validity of spendthrift provisions in trusts. These provisions restrict the beneficiary's ability to transfer their interest in the trust, whether voluntarily or involuntarily, and protect the trust assets from being claimed by the beneficiary's creditors. Under Hawaii law, a spendthrift trust effectively shields the trust's assets from most creditors' claims, with certain exceptions such as claims for child support, alimony, or restitution. It is important to note that while spendthrift trusts offer protection for the assets from the beneficiary's creditors, they must be properly structured to comply with state law and to ensure that the intended protections are enforceable.