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By Alexis Bucelo Diaz, Esq. | Last reviewed: July 3, 2026
A spendthrift trust protects a beneficiary’s inheritance from two threats at once: the beneficiary’s own spending decisions and the reach of their creditors. Florida law gives spendthrift provisions strong statutory backing in the Florida Trust Code, which makes this one of the most reliable asset protection tools available in a Florida estate plan. This guide explains how spendthrift trusts work under Florida law, who they help, what they cannot do, and how one fits alongside a revocable living trust or irrevocable trust.
Key Points
- A spendthrift clause blocks a beneficiary from pledging or assigning their inheritance and blocks most creditors from seizing trust assets before they are distributed.
- Florida enforces spendthrift provisions by statute under F.S. 736.0502, one of the stronger versions in the country.
- Some creditors can still pierce the trust: child support, spousal support, and certain other claims under F.S. 736.0503.
- You cannot protect your own assets from your own creditors with a self-settled spendthrift trust in Florida.
- Once money is distributed to the beneficiary, protection ends for those funds.
What Is a Spendthrift Trust?
A spendthrift trust is any trust that contains a spendthrift provision: language stating that a beneficiary may not voluntarily or involuntarily transfer their interest in the trust. In plain terms, the beneficiary cannot sell, pledge, or give away their future inheritance, and the beneficiary’s creditors cannot reach trust assets while those assets remain in the trustee’s hands.
The name is old-fashioned, but the use cases are modern. Parents use spendthrift provisions for adult children who struggle with money, carry debt, work in lawsuit-prone professions, or are in an unstable marriage. The provision does not signal distrust; it is standard drafting in most well-built Florida trusts because it costs nothing to include and adds a meaningful layer of protection.
Florida Law: What Makes a Spendthrift Provision Enforceable
Florida codified spendthrift protection in the Florida Trust Code. Under F.S. 736.0502, a spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of the beneficiary’s interest. A clause that only blocks creditors, or only blocks the beneficiary, is not enforceable. Well-drafted Florida trusts use language that tracks the statute, and the statute confirms that stating the trust is a “spendthrift trust” is sufficient to invoke the full protection.
While assets sit in the trust, a creditor of the beneficiary generally cannot attach them, garnish them, or force the trustee to pay. The creditor’s remedy is limited to waiting: once the trustee makes a distribution to the beneficiary, the distributed funds become the beneficiary’s property and are reachable like any other asset.
How a Spendthrift Trust Works in Practice
The mechanics matter more than the label:
- The trustee controls the money. Assets stay titled in the trust. The beneficiary receives distributions on the schedule and terms the trust document sets: fixed amounts, health and education expenses, or amounts in the trustee’s discretion.
- Discretionary distributions add a second layer. When the trustee has discretion over whether to distribute at all, a creditor generally cannot compel a distribution under F.S. 736.0504, even if the creditor holds a judgment. Combining a spendthrift clause with discretionary distribution standards is the strongest structure.
- The protection follows the trust, not the paper. A spendthrift clause can live inside a revocable living trust (taking effect for beneficiaries after the grantor’s death), an irrevocable trust, or a testamentary trust created by a will.
Spendthrift Provision Example
Suppose a mother leaves $600,000 for her son, who has credit card judgments against him. If she leaves it outright, his creditors can garnish the inheritance the moment it reaches him. Instead, her revocable living trust creates a continuing spendthrift trust: the trustee pays the son a monthly amount and may pay medical, housing, and education costs directly to providers. His creditors cannot reach the $600,000 in trust. They can pursue only what actually lands in his bank account each month, and direct payments to providers never pass through his hands at all.
What a Spendthrift Trust Cannot Do
Exception creditors can pierce it. Under F.S. 736.0503, a spendthrift provision does not stop three categories of claimants: a child entitled to court-ordered child support, a spouse or former spouse entitled to support, and a judgment creditor who provided services to protect the beneficiary’s interest in the trust (typically the beneficiary’s own attorney). Florida courts can order these claims paid from distributions the trustee would otherwise make.
You cannot use one to shield your own assets. Florida does not recognize self-settled asset protection trusts. Under F.S. 736.0505, if you create a trust for your own benefit, your creditors can reach the maximum amount that could be distributed to you, spendthrift clause or not. Protection works for what you leave to others, not for what you keep for yourself.
Distributed funds lose protection. The shield covers assets while they remain in trust. Budgeting distribution schedules and using direct-to-provider payments preserves the benefit longer.
Pros and Cons of a Spendthrift Trust
| Advantages | Limitations |
|---|---|
| Statutory creditor protection while assets are in trust (F.S. 736.0502) | Child support, spousal support, and certain other claims can pierce it (F.S. 736.0503) |
| Protects beneficiaries from their own poor money decisions | No protection for self-settled trusts in Florida (F.S. 736.0505) |
| Costs nothing extra to include in a trust you are already creating | Distributions in the beneficiary’s hands are reachable by creditors |
| Pairs with discretionary distributions for the strongest shield (F.S. 736.0504) | Requires an ongoing trustee relationship and some administrative cost |
Who Should Consider a Spendthrift Trust in Florida
- Parents leaving significant assets to an adult child with debt, addiction history, or inconsistent financial habits
- Families where a beneficiary is in a shaky marriage and a future divorce could expose the inheritance
- Beneficiaries in lawsuit-prone professions such as medicine, construction, or business ownership
- Anyone leaving assets to a young adult who is simply not ready to manage a lump sum
A spendthrift clause is usually implemented inside a broader plan: most commonly a revocable living trust that creates protected continuing trusts for beneficiaries at death, or an irrevocable trust when tax or Medicaid planning is also in play. A Florida estate planning attorney can tell you which structure fits your family.
Frequently Asked Questions
What is a spendthrift trust in Florida?
A spendthrift trust is a trust containing a provision that prevents a beneficiary from selling or pledging their interest and prevents most of the beneficiary’s creditors from reaching trust assets before they are distributed. Florida enforces these provisions by statute under F.S. 736.0502, provided the clause restrains both voluntary and involuntary transfers.
Does a spendthrift trust protect against all creditors?
No. Under F.S. 736.0503, court-ordered child support, spousal support claims, and judgment creditors who provided services to protect the beneficiary’s trust interest can reach distributions despite a spendthrift clause. All other ordinary creditors, such as credit card companies and most lawsuit judgments, are generally blocked while assets remain in the trust.
Can I create a spendthrift trust to protect my own assets in Florida?
No. Florida does not recognize self-settled asset protection trusts. Under F.S. 736.0505, if you create a trust for your own benefit, your creditors can reach the maximum amount the trustee could distribute to you, regardless of any spendthrift language. Spendthrift protection works for beneficiaries other than the person who funded the trust.
Is a spendthrift clause the same as a discretionary trust?
They are different tools that work best together. A spendthrift clause blocks transfers and creditor attachment of the beneficiary’s interest. A discretionary distribution standard under F.S. 736.0504 goes further: because no distribution is ever guaranteed, a creditor generally cannot compel the trustee to pay anything. Most well-drafted Florida trusts combine both.
How do I add a spendthrift provision to my estate plan?
A spendthrift provision is drafted into the trust document, most commonly a revocable living trust that creates protected continuing trusts for your beneficiaries after your death. If your current trust or will leaves assets outright to beneficiaries, an attorney can restate or amend the plan to add spendthrift and discretionary protections.
Informational purposes only. This article is for general informational purposes only. It does not constitute legal advice and does not create an attorney-client relationship. Florida law changes frequently. Consult a qualified Florida attorney about your specific situation. Past results do not guarantee a similar outcome.
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About the Author
Alexis Bucelo Diaz, Esq., LL.M. is the founding attorney of Bucelo Diaz Law, PLLC. She holds a Master of Laws (LL.M.) in Estate Planning from the University of Miami School of Law and has more than 15 years of focused experience in Florida estate planning, probate, and real property law. Florida Bar #86918. Selected to Super Lawyers Rising Stars in 2025.
