Spendthrift Trust Template
This Spendthrift Trust is made on [Date] by and between:
Settlor / Grantor: [Full Name]
Address: [Address]
Initial Trustee: [Full Name]
Address: [Address]
Beneficiary: [Full Name]
Address: [Address]
1. Trust Name and Creation
The Settlor creates this trust under the name:
[Name of Trust]
This trust is created for the benefit of [Beneficiary Full Name] and shall be known as the Spendthrift Trust described in this document.
2. Purpose of Trust
The purpose of this trust is to hold and manage property for the benefit of the Beneficiary under the supervision and discretion of the Trustee.
This trust is intended to provide managed support, controlled distributions, and protection against premature transfer or misuse of the Beneficiary’s trust interest to the extent allowed by law.
3. Trust Property
The Settlor transfers to the Trustee the following trust property:
[Cash]
[Investment accounts]
[Real property]
[Personal property]
[Life insurance proceeds]
[Other trust assets]
Additional property may be added to this trust at any time if accepted by the Trustee and allowed by law.
4. Revocable or Irrevocable Status
This trust shall be:
☐ revocable during the Settlor’s lifetime
☐ irrevocable
☐ otherwise as follows: [Describe]
If this trust is revocable, any amendment or revocation must be made in writing and signed as required by law.
5. Beneficiary Information
Beneficiary Name: [Full Name]
Date of Birth: [Date of Birth]
The Beneficiary is the sole primary beneficiary of this trust during the Beneficiary’s lifetime unless this document expressly states otherwise.
6. Trustee Powers and Duties
The Trustee shall manage the trust property and may take reasonable action to protect, invest, reinvest, hold, sell, lease, distribute, or otherwise administer trust assets in the best interests of the Beneficiary.
The Trustee may:
[pay approved expenses]
[retain advisers or professionals]
[open bank or investment accounts]
[purchase goods or services for the Beneficiary]
[make tax, legal, or administrative decisions related to the trust]
[exercise any other lawful trustee power consistent with this trust]
The Trustee shall act in good faith and keep reasonable records of trust activity.
7. Distributions for the Beneficiary
The Trustee may distribute income or principal for the Beneficiary’s health, education, maintenance, support, comfort, and welfare, or under the following standard:
[Describe distribution standard]
The Trustee may consider:
the Beneficiary’s needs and circumstances;
other resources available to the Beneficiary;
the long-term purpose of the trust;
the desirability of preserving trust assets.
The Trustee may make distributions:
☐ directly to the Beneficiary
☐ to providers of goods or services
☐ by reimbursement
☐ by purchase on the Beneficiary’s behalf
☐ in another lawful manner determined by the Trustee
The Trustee is not required to make equal or regular distributions and may withhold distributions if the Trustee reasonably believes that withholding is consistent with the purpose of this trust.
8. Spendthrift Restriction
No interest of the Beneficiary in the income or principal of this trust may be voluntarily or involuntarily transferred, assigned, pledged, anticipated, sold, encumbered, or reached before actual distribution by the Trustee.
To the extent allowed by law, no creditor, assignee, judgment holder, or other claimant of the Beneficiary may compel distribution, attach trust property, or otherwise reach the Beneficiary’s interest before actual receipt by the Beneficiary.
9. No Beneficiary Control Before Distribution
The Beneficiary shall have no right to demand trust principal, require a specific distribution schedule, transfer any beneficial interest, or direct trust management except as expressly stated in this trust.
Any attempted assignment, pledge, or transfer of a beneficial interest shall be void to the extent allowed by law.
10. Successor Trustee
If the Initial Trustee dies, resigns, becomes unable to serve, or is removed, the following person shall serve as Successor Trustee:
[Successor Trustee Full Name]
If the named Successor Trustee cannot serve, the next Successor Trustee shall be:
[Alternate Successor Trustee Full Name]
A Trustee may resign by written notice. A replacement Trustee may accept appointment in writing.
11. Trustee Compensation and Expenses
The Trustee shall be:
☐ entitled to reasonable compensation
☐ not entitled to compensation except reimbursement of expenses
☐ compensated as follows: [Describe]
The Trustee shall be reimbursed for reasonable expenses properly incurred in administering the trust.
12. Accounting and Records
The Trustee shall keep reasonable books and records of trust property, income, expenses, and distributions.
The Trustee shall provide an accounting or summary report:
☐ annually
☐ upon reasonable written request
☐ to the following person or persons: [Name(s)]
☐ as otherwise required by law
13. Special Administration Terms
Additional trust administration terms, if any:
[Insert rules about education, housing, support priorities, discretionary standards, advisory committees, co-trustees, or investment standards]
14. Termination of Trust
This trust shall terminate upon:
☐ the death of the Beneficiary
☐ the Beneficiary reaching age [Age]
☐ exhaustion of trust assets
☐ another event stated here: [Describe]
Upon termination, the Trustee shall pay lawful expenses, taxes, and final administration costs before distributing any remaining property as provided below.
15. Remainder Beneficiaries and Final Distribution
After termination of the trust, the remaining trust property shall be distributed as follows:
[Remainder beneficiary names and shares]
16. Governing Law
This trust shall be governed by the laws of the state of [State].
17. Signatures
Settlor / Grantor Signature: __________________________
Name: [Full Name]
Date: [Date]
Trustee Signature: __________________________
Name: [Full Name]
Date: [Date]
Successor Trustee Signature, if desired: __________________________
Name: [Full Name]
Date: [Date]
18. Notary Acknowledgment
State of [State]
County of [County]
On this [Day] of [Month], [Year], before me, the undersigned notary public, personally appeared [Name of Signer(s)], known to me or satisfactorily proven to be the person(s) whose name(s) are subscribed to this instrument, and acknowledged that they executed the same for the purposes stated herein.
Notary Public Signature: __________________________
Name: [Notary Name]
My Commission Expires: [Date]
