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 Nevada, 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. Nevada law recognizes the validity of spendthrift trusts under Nevada Revised Statutes (NRS) Chapter 166. These trusts include a spendthrift provision that restricts the beneficiary's ability to transfer their interest in the trust, whether voluntarily or involuntarily. This means that the beneficiary cannot use the trust assets as collateral for a loan, nor can creditors reach the trust assets to satisfy the beneficiary's debts, with certain exceptions such as claims for child support, alimony, or restitution. The spendthrift provision is designed to protect the trust assets from the beneficiary's potential reckless spending and from the claims of creditors, ensuring that the trust serves its purpose of providing for the beneficiary over time.