Section 46A-5-501 – Rights of beneficiary’s creditor or assignee.
To the extent a beneficiary’s interest is not subject to a spendthrift provision, the court may authorize a creditor or assignee of the beneficiary to reach the beneficiary’s interest by attachment of present or future distributions to or for the benefit of the beneficiary or other means. The court may limit the award to such […]
Section 46A-5-502 – Spendthrift provision.
A. A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary’s interest. B. A term of a trust providing that the interest of a beneficiary is held subject to a “spendthrift trust”, or words of similar import, is sufficient to restrain both voluntary and involuntary transfer of the […]
Section 46A-5-503 – Exceptions to spendthrift provision.
A. As used in this section, “child” includes any person for whom an order or judgment for child support has been entered in this or another state. B. A spendthrift provision is unenforceable against: (1) a beneficiary’s child, spouse or former spouse who has a judgment or court order against the beneficiary for support or […]
Section 46A-5-504 – Discretionary trusts; effect of standard.
A. As used in this section, “child” includes any person for whom an order or judgment for child support has been entered in this or another state. B. Except as otherwise provided in Subsection C of this section, whether or not a trust contains a spendthrift provision, a creditor of a beneficiary may not compel […]
Section 46A-5-505 – Creditor’s claim against settlor.
A. Whether or not the terms of a trust contain a spendthrift provision, the following rules apply: (1) during the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor’s creditors; (2) with respect to an irrevocable trust, a creditor or assignee of the settlor may reach the […]
Section 46A-5-506 – Overdue distribution.
A. Whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary within a reasonable time after the designated distribution date. B. […]
Section 46A-5-507 – Personal obligations of trustee.
Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. History: Laws 2003, ch. 122, § 5-507. ANNOTATIONS Effective dates. — Laws 2003, ch. 122, § 11-1106 made the act effective July 1, 2003. Law reviews. — For article, “The New Mexico Uniform Trust Code,” see […]