Spendthrift provisions prevent which forms of alienation?

• A. Only prevents voluntary alienation.
• B. Has no effect on alienation.
• C. Prevents voluntary alienation and shields trust from creditors (involuntary alienation).
• D. Only protects against creditors.

Answer: (C)

Spendthrift provisions are meant to limit both ways a beneficiary’s interest can be treated. They stop the beneficiary from transferring or assigning their right to future trust distributions — that’s voluntary alienation. At the same time, they shield the trust assets from creditors by preventing those creditors from reaching the beneficiary’s interest or forcing distributions to satisfy debts — that’s involuntary alienation. In short, the clause prevents the beneficiary from selling or giving away their interest and protects the trust from creditors trying to reach it. Some exceptions exist in practice (like certain child support or tax claims, or issues in self-settled trusts), but the general effect aligns with preventing both voluntary alienation and creditor access.