When setting up any type of trust it is important to have a spendthrift clause. This clause is important because it essentially protects the assets in the trusts from creditors of the beneficiaries (those receiving the assets from the trust). Generally, the spendthrift clause should be included in trusts where the trustor (the person putting the money into the trust) is not the beneficiary. However, in some cases, when a trustor is also a beneficiary the trust can have a spendthrift clause as well. This is apparent in many jurisdictions outside of the continental United States and also Alaska, Delaware and Nevada.

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