It’s been a while since we last looked at spendthrift clauses in trusts.  If drafted correctly, they can be an effective tool for shielding assets.  Of course, if a beneficiary knows he or she is an actual or contingent remainder beneficiary of a trust, then it usually helps for that beneficiary to actually know whether a spendthrift clause exists.

In Estate of Hord, the Court of Appeals of Iowa had occasion to consider the enforceability and scope of the spendthrift clause in Carl Hord’s will.  Let’s take a look at what the clause said: