Spendthrift Trusts & Creditor Protection
Trusts · Lesson 06
Spendthrift Trusts & Creditor Protection
這一課問的是：揮霍條款是否保護受益人之利益免受債權人？
ActorActObjectStandardConsequence
Visual Scene · the picture in your head
Issue. Does the spendthrift clause protect the beneficiary's interest from creditors?
這一課問的是：揮霍條款是否保護受益人之利益免受債權人？
Core Terminology · 7 must-know
Tap a card to flip and reveal the meaning.
spendthrift trust
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Trust restricting beneficiary's ability to transfer interest.
揮霍信託。
voluntary alienation
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Beneficiary cannot voluntarily transfer.
自願轉讓。
involuntary alienation
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Creditors cannot reach interest.
非自願轉讓。
exceptions
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Alimony, child support, government tax, necessaries.
例外。
disbursed funds
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Once distributed, funds are reachable.
已分配。
self-settled
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Spendthrift restriction not enforced for settlor's own benefit (most states).
自我設立。
DAPT
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Domestic Asset Protection Trusts in select states.
DAPT。
Issue · what this lesson is really about
Does the spendthrift clause protect the beneficiary's interest from creditors?
這一課問的是：揮霍條款是否保護受益人之利益免受債權人？
Trigger words & phrases that should flag this issue:
spendthriftcreditorsattachalimonychild support
Expression Bank · how lawyers actually say it
Six function → sentence patterns. Use these in essay applications.
| Function | English sentence | 中文 |
|---|---|---|
| Apply spendthrift | Spendthrift trust bars beneficiary from voluntarily transferring or creditors from involuntarily reaching the interest. | 揮霍信託阻止自願轉讓與非自願執行。 |
| Apply exceptions | Spendthrift trusts yield to alimony, child support, government tax, and necessaries. | 揮霍信託對贍養、撫養、稅、必需品讓位。 |
| Apply self-settled | Spendthrift restriction unenforceable against settlor's own creditors (most states). | 自我設立之揮霍信託對設立人債權人通常無效。 |
Rule Sentence · the workhorse
A spendthrift trust restricts a beneficiary's voluntary and involuntary alienation of trust interests, generally barring creditors from reaching the interest until distribution; exceptions exist for alimony, child support, government tax claims, and providers of necessaries.
Sentence Anatomy · 5 roles, 5 colors
Every rule sentence breaks into five visual roles.
Actor 行為人settlor設立人
Act 行為including spendthrift clause加入揮霍條款
Object 對象beneficiary's interest受益人之利益
Standard 法律標準spendthrift restriction + exceptions揮霍限制 + 例外
Consequence 後果creditor protection (with exceptions)債權人保護（有例外）
Casebook Snapshot · a real American case
Shelley v. Shelley
Holding. Despite a spendthrift clause, trust assets may be reached for the beneficiary's spousal and child support obligations; spendthrift protection yields to compelling public policies favoring family support.
Why it matters. Shelley confirms spousal/child support exception to spendthrift — public policy trumps creditor protection.
Shelley：揮霍信託對贍養、撫養義務讓位。
Common Mistakes · what trips students
✗ spendthrift 永久不可達。
✓ Once distributed, funds are reachable.
已分配後可達。
✗ spendthrift 適用所有 creditors。
✓ Exceptions exist.
有例外。
Mini IRAC · build the Application
Issue. May a creditor of beneficiary B reach B's interest in a trust containing a spendthrift clause?
Rule. A spendthrift trust bars creditors from reaching the beneficiary's interest before distribution, with limited exceptions for alimony, child support, government tax, and necessaries providers.
Application (model). The trust contains an explicit spendthrift clause; B owes the creditor a non-exempt commercial debt. Because spendthrift trusts protect beneficiary interests from creditors except where exceptions apply, the fact that the creditor is an ordinary commercial creditor not within any exception means the spendthrift protection bars the creditor's reach.
Pick the right element for each blank:
g1.
g2.
Conclusion. Therefore, the creditor cannot reach B's trust interest until distributions are made to B.
MBE Check · multiple choice
S settles a spendthrift trust for own benefit. S incurs $100,000 in debt to a hospital. Can the hospital reach the trust?
Practice Drill · tap to build the rule
Drop the chips here in correct order:
Tap chips to add → tap chips in the target to remove: