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 Wyoming, 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. 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. Wyoming statutes uphold the validity of spendthrift provisions in trusts, meaning that creditors generally cannot reach the assets in a spendthrift trust to satisfy the debts of the beneficiary. This type of trust is particularly useful for grantors who wish to provide for a beneficiary who may not have the ability to manage funds responsibly. It's important to note that while spendthrift trusts offer protection against most creditors, they may not protect against certain claims such as those for child support, alimony, or government claims.