Spendthrift Clause Law and Legal Definition
Spendthrift clause refers to a provision in a will, dishonoring claims against the property gifted by that will, which has been pledged, mortgaged or otherwise transferred in anticipation, by the person to whom such gifts were proposed in the will.
The following is an example of a case law on spendthrift clause;
Spendthrift provisions generally are designed to prevent a beneficiary from alienating his/her own interests in trust assets through pledging those interests, or the trust assets themselves, for the benefit of his creditors. [Miller v. United States, 949 F. Supp. 544, 545 (D. Ohio 1995)].
