Pennsylvania Spendthrift Trusts
By Sean Quinlan, Esq. · Updated January 15, 2025
A spendthrift provision restrains a beneficiary from voluntarily or involuntarily transferring their trust interest. Pennsylvania enforces them under 20 Pa.C.S. § 7742.
What it does
Creditors of the beneficiary generally cannot reach the trust assets or pending distributions. Once distributed, funds become fair game.
Exceptions
Child support, alimony, federal tax liens, and (in some cases) restitution claims can pierce a spendthrift clause.
Self-settled
Pennsylvania does not allow a settlor to create a spendthrift trust for the settlor's own benefit (no PA DAPT statute). Out-of-state jurisdictions can be used with care.
This article is general information about Pennsylvania law as of the update date above. It is not legal advice for your situation and does not create an attorney-client relationship. For advice on your specific facts, please schedule a consultation.
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