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 Massachusetts, 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 being misused by the beneficiary or from being accessed by the beneficiary's creditors. Massachusetts General Laws Chapter 203E, the Massachusetts Uniform Trust Code, provides the framework for the creation and operation of spendthrift trusts in the state. Under this code, a spendthrift provision is enforceable and prevents the beneficiary's interest from being transferred and creditors from reaching the trust assets to satisfy the beneficiary's debts, with certain exceptions such as claims for child support, alimony, or those by the government. This type of trust is particularly useful for beneficiaries who may not have the ability to manage funds wisely, as it ensures that the assets are preserved and used according to the grantor's intentions.