What is a self-settled spendthrift trust (SSST)?
A. A self-settled spendthrift trust is a trust created pursuant to Nevada Revised Statutes Chapter 166. A spendthrift trust contains certain restrictions on the beneficiaries’ ability to sell, assign or convey their interest in the trust, as well as limitations on the ability of the beneficiaries’ creditors to attach the trust property. A self-settled spendthrift trust is one which contains spendthrift provisions for the benefit of the settlor (the person creating the trust). Nevada law states that “the trustee of a spendthrift trust is required to disregard and defeat every assignment or other act, voluntary or involuntary, that is attempted contrary to the provisions of [The Spendthrift Trust Act of Nevada].” Only a handful of states permit someone to set up a spendthrift trust for their own benefit. Fortunately, Nevada, which passed the Spendthrift Trust Act of Nevada in 1999, is one of those states.
