Legal Question in Wills and Trusts in Texas
I have a trust and the spendthrift clause states that "No beneficiary of the trust shall have the power to dispose of or to charge by way of anticipation any interest given, and all sums payable to any beneficiary shall be free and clear of his or her debts, contracts, disposition, pledges and anticipations, and shall not be taken or reached by any legal or equitable process in satisfaction thereof.
Can you tell me what this means in layman's terms?
1 Answer from Attorneys
It simply means that the creditors of the beneficiary cannot go after the trust property as long as it remains in the trust. If it is distributed to the beneficiary, then it is his and could possibly be attached by a creditor.
It also means that the beneficiary cannot use the principle in the trust to secure debts.
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