Nonalienation Clause

Definition of "Nonalienation clause"

A clause in a document forbidding an individual from selling or transferring the subject property to another. Frequently, nonalienation clauses are used in a trust where the grantor of the trust believes the designated beneficiary is a spendthrift. In this situation, a nonalienation clause may be inserted to prevent the beneficiary from selling the assets of the trust. This type of trust is called a spendthrift trust.

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