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 Maine, a spendthrift trust is a legal tool that allows a grantor to place assets in a trust with specific provisions that prevent the beneficiary from squandering the trust's assets. Maine 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's assets from the claims of the beneficiary's creditors. Under Maine law, a spendthrift trust can effectively shield the trust's assets from being used to pay for the beneficiary's debts, except in certain circumstances such as claims for child support, alimony, or services provided to protect the beneficiary's interest in the trust. 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 their effectiveness. An attorney with experience in trust and estate law can provide guidance on the creation and administration of a spendthrift trust in Maine.