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 Utah, a spendthrift trust is a legal tool used to protect the assets placed in a trust from being squandered by a beneficiary who may not be financially responsible. Under Utah law, specifically the Utah Uniform Trust Code, spendthrift provisions are recognized and enforceable. These provisions prevent the beneficiary from transferring their interest in the trust, either voluntarily or involuntarily, thus safeguarding the trust assets from the beneficiary's creditors or from being used as collateral for debts. The trust's assets are only accessible to the beneficiary according to the terms set by the grantor in the trust agreement. This means that creditors generally cannot reach the trust assets to satisfy the beneficiary's debts, except in certain circumstances such as claims for child support, alimony, or services provided to protect the beneficiary's interest in the trust.