A more thorough explanation:

A self-settled trust, also known as a spendthrift trust, is a type of trust that allows a person who creates the trust to also be the beneficiary of the trust. The assets in the trust are permanently controlled by a trustee, which keeps them out of reach of most creditors. However, the ability for creditors to access the trust assets or for the assets to be used to pay taxes varies depending on the state or court ruling.

John creates a self-settled trust and names himself as the beneficiary. He transfers his assets into the trust, which is managed by a trustee. The trustee has control over the assets and can use them to benefit John, such as paying for his medical expenses or providing him with a monthly allowance. However, if John has creditors who are seeking payment, they may not be able to access the assets in the trust.

Another example is if Sarah creates a self-settled trust and names herself as the beneficiary. She transfers her assets into the trust, which is managed by a trustee. The trustee can use the assets to pay for Sarah's living expenses, such as rent or groceries. However, if Sarah owes taxes to the government, the assets in the trust may be used to pay those taxes.

These examples illustrate how a self-settled trust can be used to protect assets from creditors while still allowing the creator of the trust to benefit from those assets.