mother daughterA spendthrift trust is a trust where the trust property is protected from its beneficiary’s creditors. Generally, the requirements of such a trust is that the trust is irrevocable, the beneficiary has no control over distributions of property from the trust, and in most states, the beneficiary of the trust cannot be the same person as the grantor. These concepts can be combined with dynastic trusts so that it protects a family’s assets (or an individual family member’s assets) from potential losses from law suits, divorce, and estate taxation.