§ 35-15-506. Distributions Relative to Support, Mandatory and Certain Remainder Interests
Relative to a support interest, whether or not a trust contains a spendthrift provision: Although a beneficiary of a support interest has enforceable rights under § 35-15-814, those rights do not raise the beneficiary’s support interest to the level of a property interest; No creditor or assignee shall reach that support interest until a distribution […]
§ 35-15-507. Personal Obligations of Trustee
Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt.
§ 35-15-508. Removal or Replacement Power Over Trustee or Other Fiduciary Not Reachable by Holder’s Creditors — Interests of Beneficiary Who Is Also a Trustee or Other Fiduciary Not Reachable
No creditor or assignee of a beneficiary shall have the power to reach an interest of a beneficiary or any other person who holds an unconditional or conditional removal or replacement power over a trustee or other fiduciary. Such power over a trustee or other fiduciary is personal to the holder and shall not be […]
§ 35-15-510. Immunity From Claims of Separate Creditors of Trust Property Conveyed to Trustee by Husband and Wife as Tenants by the Entirety
As used in this section, “proceeds” means: Property acquired by the trustee upon the sale, lease, license, exchange, or other disposition of property originally conveyed by a husband and wife as tenants by the entirety to a trustee or trustees; Property collected by the trustee on, or distributed on account of, property originally conveyed by […]
§ 35-15-505. Creditor’s Claims Against Settlor
Whether or not the terms of a trust contain a spendthrift provision, the following rules apply: During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor’s creditors. Except as provided in chapter 16 of this title regarding investment services trusts and subdivisions (a)(3)-(5) regarding an irrevocable […]
§ 35-15-501. Application; Rights of Beneficiary’s Creditor or Assignee
This part applies to a creditor’s or assignee’s claims and ability to reach mandatory, support and discretionary interests regardless of whether such interests are subject to a spendthrift provision. To the extent not otherwise prohibited by this part, the court may authorize a creditor or assignee of the beneficiary to reach the beneficiary’s distribution interest […]
§ 35-15-502. Spendthrift Provision
A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary’s interest. 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 beneficiary’s interest. […]
§ 35-15-503. Exceptions to Spendthift Provision
A spendthrift provision is unenforceable against a claim of this state to the extent a statute of this state so provides.
§ 35-15-504. Discretionary Interests — Effect Thereof
A discretionary interest is neither a property interest nor an enforceable right; it is a mere expectancy. Relative to a discretionary interest, whether or not a trust contains a spendthrift provision: No creditor or assignee shall force or otherwise reach a distribution with regard to a discretionary interest; No creditor or assignee shall require a […]