A spendthrift trust is a trust in which the person who makes the trust and places property or assets in it (the grantor, settlor, or trustor) includes a provision that prohibits the beneficiary’s interest in the trust from being assigned to another person or entity—whether as a gift or as collateral for a loan or debt—and prevents a creditor from reaching or attaching the beneficiary’s interest in the trust.

A spendthrift is a person who spends money wastefully or foolishly and a spendthrift provision in a trust (a spendthrift trust) is designed to preserve the trust’s assets and protect the beneficiary from the beneficiary’s spendthrift ways.

In Georgia, a spendthrift trust is a legal tool that allows a grantor to place assets in a trust with specific provisions that prevent the beneficiary from squandering the trust's assets. These provisions restrict the beneficiary's ability to assign their interest in the trust to others, whether voluntarily or as collateral for debt, and also protect the trust's assets from being accessed by the beneficiary's creditors. Georgia law recognizes the validity of spendthrift trusts under the Georgia Trust Code, provided they are properly established and the provisions do not violate any public policy or statutory prohibitions. The spendthrift clause in the trust effectively shields the trust assets from most of the beneficiary's creditors, except in certain situations such as claims for child support, alimony, or other exceptions as specified by law. It is important for individuals considering setting up a spendthrift trust in Georgia to consult with an attorney to ensure that the trust is structured correctly and in accordance with state law.