What is a spendthrift clause and why should I make sure to include one in my trust?

A spendthrift clause provides protection against voluntary and involuntary transfers of trust assets. For example, in the event that a beneficiary (e.g., your child) gets divorced, sued, or files for bankruptcy, the spendthrift clause (in conjunction with a properly structured trust) would protect those assets. Not surprisingly, many parents look for this type of protection when creating a trust for the benefit of their children until they feel their children have reached full financial maturity - generally somewhere between age 25 and 35.