What is the primary purpose of a spendthrift trust?

The primary purpose of a spendthrift trust is to protect beneficiaries from creditors. This type of trust is specifically designed to manage the distribution of assets for beneficiaries who may not be financially responsible or who might otherwise be at risk of losing their inheritance due to financial mismanagement or creditor claims. By using a spendthrift provision, the trust restricts the beneficiaries' access to the trust assets, which means that creditors generally cannot claim those assets to settle debts; they do not have direct access to the funds until the trustee decides to distribute them.

This trust arrangement ensures that beneficiaries can receive financial support over time while safeguarding those assets from potential claims by creditors. In contrast, the other options focus on different aspects of trust management. For example, some trusts may indeed allow the trustee to make all decisions, but that’s not the defining feature of a spendthrift trust. Similarly, distributing assets immediately upon death or avoiding probate are considerations relevant to other types of trusts but do not capture the essence of what a spendthrift trust is designed to achieve.