What is the typical effect of a spendthrift provision in a trust?

• A. It prevents creditors from reaching the trust assets to satisfy the beneficiary's debts.
• B. It prevents the trustee from distributing to the beneficiary.
• C. It requires annual distributions to the beneficiary.
• D. It makes the trust revocable.

Answer: (A)

Spendthrift provisions protect the beneficiary’s interests by shielding trust assets from creditors. Because the beneficiary’s interest is not freely transferable and distributions come from the trustee at the trustee’s discretion, creditors typically cannot reach the trust assets or pending distributions to satisfy the beneficiary’s debts. This protection remains the usual effect of such a clause, though there are exceptions in some jurisdictions for things like child support, alimony, or self-settled trusts. The provision does not compel or forbid distributions, nor does it make the trust revocable.