Dictionary of Law
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spendthrift clause :: legal definition


Spendthrift clause - n. a provision in a trust or will that states that if a prospective beneficiary has pledged to turn over a gift he/she hopes to receive to a third party, the trustee or executor shall not honor such a pledge. The purpose is to prevent a "spendthrift" beneficiary from using a potential gift as security for credit on a speculative investment. Example: Junior Jones is talked into an investment in Florida swampland but has no money in hand to pay for it. So he tells the developer he will soon receive $50,000 from his aunt's trust and signs an assignment of the expected $50,000 to the developer. When the aunt dies, the trustee must ignore the developer's demand for payment based on the written assignment but may pay the funds directly to Junior.

See also: trust will and Related Law Terms ↓


Related Law Terms

abatement :: n. 1) the removal of a problem which is against pu ... eneficiary in full. See also: abate
acceptance :: n. 1) receiving something from another with the in ... ered into. See also: contract offer
accretion :: n. 1) in real estate, the increase of the actual l ... cted event. See also: probate trust
bankruptcy :: n. a federal system of statutes and courts which p ... y proceedings trustee in bankruptcy
beach bum trust provision :: n. a requirement in a trust that a beneficiary can ... live off the trust. See also: trust
cestui que trust :: n. (properly pronounced ses-tee kay, but lawyers p ... ust's assets. See also: beneficiary
cestui que use :: (pronounced ses-tee kay use or setty kay use) n. a ... beneficiary cestui que trust trust
change of circumstances :: n. the principal reason for a court modifying (ame ... ild support divorce spousal support
charitable remainder trust (Charitable Remainder Irrevocable Unitrust) :: n. a form of trust in which the donor (trustor or ... ed up or committed. See also: trust
commingling :: n. the act of mixing the funds belonging to one pa ... rust accounts for funds of another.
conditional bequest :: n. in a will, a gift which will take place only if ... rries." See also: bequest executory
contingent beneficiary :: n. a person or entity named to receive a gift unde ... lso: contingent contingent interest
co-trustee :: n. a trustee of a trust when there is more than on ... act alone. See also: trust trustee
cy pres doctrine :: n. (see-pray doctrine) from French, meaning "as cl ... ey among several S.P.C.A. chapters.
declaration of trust :: n. the document signed by a trustor (settlor) crea ... also: settlor trust trustee trustor
deed of trust :: n. a document which pledges real property to secur ... : foreclosure mortgage reconveyance
devisee :: n. a person who receives a gift of real property b ... will. See also: beneficiary legatee
fiduciary :: 1) n. from the Latin fiducia, meaning "trust," a p ... lation fiduciary relationship trust
generation skipping :: adj., adv. referring to gifts made through trusts ... to a grandchild without a gift tax.
in kind :: adj. referring to payment, distribution or substit ... . See also: distribution trust will
lapse :: 1) v. to fail to occur, particularly a gift made i ... eficiary devisee legatee trust will
legacy :: n. a gift of personal property or money to a benef ... o: beneficiary bequest legatee will
legatee :: n. a person or organization receiving a gift of an ... eficiary devise devisee legacy will
non-discretionary trust :: n. a trust in which the trustee is directed to inv ... ower in the matter. See also: trust
per stirpes :: (purr stir-peas) adj. Latin for "by roots," by rep ... descent and distribution trust will
reconveyance :: n. in those states which use deeds of trust as a m ... conveyance. See also: deed of trust
reformation :: n. the correction or change of an existing documen ... neral partner sues for reformation.
trust :: n. an entity created to hold assets for the benefi ... testamentary trust trustee trustor
trustee :: n. a person or entity who holds the assets (corpus ... es. See also: settlor trust trustor
will :: n. a written document which leaves the estate of t ... will and testament probate testator

Popular Law Searches

legal definition ministerial act :: n. an act, particularly of a governmental employee ... exercising any individual judgment.
chancery legal definition :: n. a court that can order acts performed. Today ch ... ts in most states. See also: equity
testamentary disposition legal definition :: n. how the terms of a will divide the testator's ( ... named beneficiaries. See also: will
contract of sufferance :: n. a "hold-over" tenancy after a lease has expired ... y tenancy at will unlawful detainer
forthwith legal definition :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
forthwith definition legal :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
what is to wit in a legal contract :: prep. that is to say. Example: "the passengers in ... tty Bumgartner and Sherry Younger."
mirror wills legal definition :: n. the wills of a husband and wife which are ident ... d each names the other as executor.
clean hands doctrine latin :: n. a rule of law that a person coming to court wit ... ices. See also: affirmative defense
sine qua non only relates to contract law :: (see-nay kwah nahn) prep. Latin for "without which ... qua non of the injury to Playmate.

Other Law Terms - S

said :: adj. a reference back to a thing that was previous ... automobile in a negligent manner."
sale :: n. transfer of something (and title to it) in retu ... contract forced sale sheriff's sale
salvage :: 1) v. to save goods. 2) n. payment to a person or ... which saves cargo from a shipwreck.
sanction :: n. 1) a financial penalty imposed by a judge on a ... ction." See also: contempt of court
satisfaction :: n. receiving payment or performance of what is due ... n contract satisfaction of judgment
satisfaction of judgment :: n. a document signed by a judgment creditor (the p ... ord. See also: abstract of judgment
satisfaction of mortgage :: n. a document signed by a lender acknowledging tha ... id off the debt. See also: mortgage
save harmless :: v. 1) also called hold harmless, to indemnify (pro ... . See also: hold harmless indemnify
savings and loan :: n. a banking and lending institution, chartered ei ... vings into the home finance market.
scienter :: n. Latin for "having knowledge." In criminal law, ... ents were lies and thus fraudulent.
scintilla :: n. Latin for "spark." Scintilla is commonly used i ... ark) upon which to base a judgment.
scope of employment :: n. actions of an employee which further the busine ... ter and servant respondeat superior
scrivener :: n. a person who writes a document for another, usu ... r practicing law without a license.
seal :: n. a device which creates an impression upon paper ... e "sealed," but that is rare today.
sealed verdict :: n. the decision of a jury when there is a delay in ... reconvenes. See also: jury verdict
sealing of records :: n. trial records and decisions which a judge order ... eep the terms from public scrutiny.
search :: v. 1) to examine another's premises (including a v ... e search and seizure search warrant
search and seizure :: n. examination of a person's premises (residence, ... robable cause search search warrant
search warrant :: n. a written order by a judge which permits a law ... ble cause search search and seizure
second degree murder :: n. a non-premeditated killing, resulting from an a ... t degree murder manslaughter murder