Florida Spendthrift Trust: Protect a Beneficiary

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. The beneficiary still keeps the baseline rights every Florida trust beneficiary has, namely to be kept informed, to see accountings, and to hold the trustee to the trust’s terms.

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, though a support or alimony order is the recognized exception
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. We followed one of those cases from the divorce settlement all the way to the garnishment order, where four family trusts were paying every household bill for a man who had stopped writing his alimony check, in the trust that paid every bill. 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. For the full picture of how families use these clauses inside an estate plan, read our guide to protecting your child’s inheritance.

What Florida Courts Have Held

Everything above is the plain-English version. If you want the law itself, we annotate the governing sections of the Florida Trust Code one at a time, with the statute quoted in full and the courts’ own words alongside it.

Fla. Stat. 736.0504, discretionary trusts. The protection side. In 2010 a Florida appellate court refused to let a creditor holding a judgment of more than one million dollars reach a discretionary trust, even after the trial judge found the beneficiary controlled the trust completely and the trustee rubber-stamped him. The reason is a single sentence about where a court has to look, and it is the sentence that decides most of these fights.
Fla. Stat. 736.0503, the exceptions. The other side. A child, spouse, or former spouse holding a support order can garnish the distributions a trustee actually makes, including payments sent to third parties on the beneficiary’s behalf. In 2019 a Florida appellate court applied that to a special needs trust and a child support arrearage. There is a last resort condition attached, and it is the part most people skip.
Fla. Stat. 736.0505, your own trust and your creditors. The one that catches people out. A spendthrift clause does nothing against the creditors of the person who created the trust, and in a revocable trust the property answers to them exactly as if it had never been transferred. No Florida appellate court has construed it.
The Florida Trust Code, chapter 736. How the whole chapter is organized, and which sections Florida’s appellate courts have never construed at all.

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. Florida appellate courts have enforced that exception against ordinary family trusts and against a special needs trust, and it reaches payments a trustee makes to third parties on the beneficiary’s behalf as well as payments made to the beneficiary directly. 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

Florida Trust Code: spendthrift provisions §736.0502 (annotated); exceptions (child support, alimony, certain claims) §736.0503; self-settled-trust limits §736.0505. (retrieved 2026-06-10)

Updated on August 19, 2026. Reviewed by Kevin D. Klagge, Esq., Fla. Bar No. 99502. Attorney Kevin Klagge represents families, businesses, and international clients in estate and tax planning, business structuring, 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.

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This guide is part of Florida Irrevocable Trusts.

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