spendthrift trust

Definition of "spendthrift trust"
  1. A fund set up for a beneficiary deemed reckless with finances, where the trustee controls the income and directly pays debts or doles out money as necessary
How to use "spendthrift trust" in a sentence
  1. Due to his reckless spending habits, his parents created a spendthrift trust to manage his inheritance.
  2. They used a spendthrift trust to protect their child's future earnings from potential creditors.
  3. A spendthrift trust was established to minimize the risk of mismanagement of funds by the beneficiary.

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