How effective is a spendthrift clause in a revocable living trust to protect oneself from creditors?

A spendthrift clause in a revocable living trust does not provide protection from creditors. This type of clause is intended to prevent beneficiaries from squandering their inheritance and to restrict creditors from accessing a beneficiary’s interest in the trust until it is distributed. However, in the case of revocable living trusts, the grantor retains control over the assets and has the ability to revoke or amend the trust at any time. Because of this control, creditors can reach the assets in the trust since they are considered available to satisfy the grantor's debts.

In essence, while a spendthrift clause may offer some level of protection in irrevocable trusts, in the context of a revocable living trust, it is ineffective against creditors. Hence, the notion that it is effective in any of the situations listed in the other options is inaccurate due to the nature of revocable trusts.