A spendthrift clause in a trust makes the trust indefinite in duration. What term best describes this characteristic?

A spendthrift clause in a trust is designed to protect the trust assets from being accessed by creditors and beneficiaries who may not manage their finances prudently. This type of clause limits the beneficiaries' ability to transfer their interest in the trust, effectively creating a barrier against potential claims from creditors.

When discussing the trust's duration, the presence of a spendthrift clause can often contribute to the trust's ability to exist indefinitely, as it maintains the trust’s assets within the framework established by the trustor without the immediate distribution to beneficiaries. This aligns with the concept of a perpetual trust, which is one that continues indefinitely, contrary to being limited by a specific term or condition that would lead to its eventual termination.

In this context, the characteristic of being perpetual signifies that the trust does not dissolve after a certain period, but rather can continue to operate indefinitely, benefiting both the beneficiaries and the trustor’s intentions. Perpetual trusts can exist for generations as long as they adhere to the rules of perpetuities, often being reconstructed or modified in such a way as to comply with legal standards while still providing asset protection and financial stability for the beneficiaries involved.