Which statement best describes spendthrift clauses?

• A. Spendthrift clause only restricts voluntary alienation.
• B. Spendthrift clause prevents both voluntary and involuntary alienation.
• C. Spendthrift clause imposes no restrictions.
• D. Spendthrift clause only restricts involuntary alienation.

Answer: (B)

A spendthrift clause is a provision in a trust that restricts how a beneficiary can deal with their interest and also shields that interest from most creditors. Its main purpose is to prevent both voluntary and involuntary alienation of the beneficiary’s interest: the beneficiary cannot freely transfer or assign future distributions, and creditors typically cannot reach the trust assets to satisfy a creditor claim before the distributions are actually paid out. This dual protection is why the statement that describes restricting both voluntary and involuntary alienation is the best fit. The other options only mention one side or none, which doesn’t capture the full effect of a spendthrift clause. Exceptions can exist in some jurisdictions for specific claims, but the general idea remains: dual protection against alienation.