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 Maryland, a spendthrift trust is a legal tool that allows a grantor to place restrictions on a beneficiary's access to trust assets, thereby protecting those assets from the beneficiary's potential imprudent spending and from the claims of creditors. Maryland law recognizes the validity of spendthrift provisions in trusts, as long as they are properly structured and do not violate public policy or certain legal exceptions. Under Maryland law, a spendthrift provision prevents most creditors from reaching the trust assets to satisfy the debts of the beneficiary. However, there are exceptions to this protection, such as claims for child support, alimony, or necessary services rendered to the beneficiary or the beneficiary's family. It is important to note that while spendthrift trusts offer a degree of asset protection, they must be carefully drafted by an attorney to ensure they comply with Maryland statutes and case law.