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Florida Spendthrift Trusts

Leave an inheritance to someone who can’t manage it, or who has creditors, without leaving it exposed.

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Quick Overview

A Florida spendthrift trust lets you leave an inheritance to someone who cannot manage money, or who has creditors or a divorce risk, without leaving it exposed. A spendthrift clause keeps the beneficiary’s interest out of reach of their creditors until money is actually distributed, and the trustee controls the timing and amount. It has one real limit, and that limit is what the page comes down to below.

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Below, we walk through the 3 issues that decide whether this is the right move for you. Jump to any one:

  1. What It Does The clause stops the beneficiary from selling, pledging, or giving away their interest, and keeps it from creditors until distribution. The catch is who actually decides when money goes out.
  2. What It Protects Against While assets stay in the trust, a judgment, a divorcing spouse, or credit-card debt generally cannot reach them. But the shield drops the moment money is paid out, for one reason below.
  3. The Limits Two things slip past a spendthrift clause: certain claims like child support and alimony, and the big one. You cannot use one to shield your own assets from your own creditors.

Prefer to see it? See the outright-vs-trust diagram ↓

That’s the quick version. The details below are what decide your situation, and where the costly mistakes hide.

What It Does

A spendthrift clause stops the beneficiary from selling, pledging, or giving away their interest, and keeps that interest out of reach of their creditors until money is actually distributed. The trustee controls the timing and amount. It is the right tool for an heir who is bad with money, faces creditors or a lawsuit, struggles with addiction, or is too young to handle a lump sum. They benefit from the money without being able to blow it or lose it.

What It Protects Against

While assets stay in the trust, a beneficiary’s creditors, a judgment, or a divorcing spouse generally cannot reach them. The shield covers the interest before distribution; once the trustee pays money out, it is the beneficiary’s and is exposed, which is why a well-built spendthrift trust uses discretionary distributions and a trustee who can say no.

Florida spendthrift trust: an outright inheritance is exposed to creditors and divorce; inside the trust it generally is not
The same inheritance, two ways: left outright it is exposed to the beneficiary’s creditors and divorce; inside a spendthrift trust, it generally stays out of reach until distributed.

The same comparison in words:

An inheritance left outright vs. inside a Florida spendthrift trust: creditors, divorce, and control
An inheritance left outright Inside a spendthrift trust
Their creditors and a lawsuit judgment can reach it Creditors generally cannot reach it until money is actually distributed
Exposed in a divorce, because the money is theirs A divorcing spouse usually cannot touch the trust principal
A lump sum they can blow or lose The trustee controls the timing and amount

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The Limits

Two things to know. Florida lets certain claims through even a spendthrift clause, notably child support and alimony. And a spendthrift trust protects a trust you create for someone else; you cannot use one to shield your own assets from your own creditors in Florida, that is the separate, limited world of asset protection. If your beneficiary receives public benefits, we use a special-needs trust instead, so the inheritance does not disqualify them.

Frequently Asked Questions

What Is a Spendthrift Trust?

It is a trust with a spendthrift clause, a provision that stops the beneficiary from selling, pledging, or giving away their interest, and shields that interest from the beneficiary’s creditors until money is actually distributed. The trustee controls when and how much the beneficiary receives. It is how you leave money to someone who is bad with money, has creditors or a lawsuit risk, struggles with addiction or gambling, or is simply too young or vulnerable to manage a lump sum, without leaving it exposed.

What Does It Protect Against?

While assets stay in the trust, a beneficiary’s creditors generally cannot reach them, a lawsuit judgment, credit-card debt, or a divorcing spouse usually cannot touch the trust principal. The protection applies to the beneficiary’s interest before distribution. Once the trustee hands money to the beneficiary, that money is theirs and is exposed, which is why a good spendthrift trust uses discretionary distributions and a thoughtful trustee.

What Can’t a Spendthrift Trust Do?

Two limits matter. First, Florida law lets certain claims through even a spendthrift clause, notably child support and alimony, and some governmental claims. Second, and this is the big one, a spendthrift trust protects a trust you set up for someone else; you cannot set up a spendthrift trust for your own benefit and shield your own assets from your own creditors in Florida. That is a different (and limited) area, asset protection, with its own rules.

Is It a Separate Trust or Part of My Plan?

Usually it is built into your existing plan: your revocable living trust can direct that a child’s or grandchild’s share stays in a protected, spendthrift subtrust rather than being paid out at once. It can also be a standalone irrevocable trust. We design it around the specific beneficiary you are worried about, and pair it with a special-needs trust if a beneficiary receives benefits.

Can the Beneficiary Be the Trustee of a Spendthrift Trust?

It weakens the design. The shield works because someone other than the beneficiary controls the timing and amount of distributions; a beneficiary who can write themselves checks is not being protected from much. Sound Florida planning pairs the spendthrift clause with an independent trustee who holds real discretion and can say no, even to a persistent heir. Most families name a trusted independent person, a professional, or a trust company, and we help you weigh those choices at the consult.

Sources of Law

Updated on July 12, 2026. Reviewed by Kevin D. Klagge, Esq., Fla. Bar No. 99502. Attorney Kevin Klagge represents families, businesses, and international clients in estate planning and international law, with a focus on Florida legal tools. He litigates estate and business issues in court. General information about Florida law, not legal advice. Do not send confidential information until we have agreed to represent you.