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 Washington State, spendthrift trusts are recognized and governed by the Revised Code of Washington (RCW), specifically under Title 11 which pertains to Probate and Trust Law. A spendthrift provision within a trust is designed to protect the trust's assets from the beneficiaries' potential creditors by restricting the beneficiary's ability to transfer their interest in the trust, whether voluntarily or involuntarily. This means that the beneficiaries cannot use their interest as collateral for loans, nor can creditors typically reach these assets to satisfy the beneficiaries' debts. However, there are exceptions to this protection, such as claims for child support, alimony, or services provided to protect the beneficiary's interest in the trust. It's important to note that while spendthrift trusts offer a degree of asset protection, they must be properly structured and operated in accordance with Washington law to ensure their effectiveness. An attorney with experience in estate planning can provide guidance on the creation and administration of a spendthrift trust in Washington.