§ 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 […]
§ 35-15-601. Capacity of Settlor of Revocable Trust — Form of Execution for Post-Death Disposition
The capacity required to create, amend, revoke, or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will. To be effective as a post death disposition of property transferred during the transferor’s life or by the transferor’s […]
§ 35-15-602. Revocation or Amendment of Revocable Trust
Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust. This subsection (a) does not apply to a trust created under an instrument executed before July 1, 2004. If a revocable trust is created or funded by more than one (1) settlor: To the […]
§ 35-15-603. Settlor’s Powers — Powers of Withdrawal
While a trust is revocable and the settlor has capacity to revoke the trust, rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor. If a revocable trust has more than one (1) settlor, the duties of the trustee are owed to all […]
§ 35-15-604. Limitation on Action Contesting Validity of Revocable Trust — Distribution of Trust Property
A person may commence a judicial proceeding to contest the validity of a trust that was revocable immediately preceding the settlor’s death within the earlier of: Two (2) years after the settlor’s death; or One hundred twenty (120) days after the trustee sent the person a copy of the trust instrument and a notice informing […]
§ 35-15-415. Reformation to Correct Mistakes
The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor’s intention if it is proved by clear and convincing evidence that both the settlor’s intent and the terms of the trust were affected by a mistake of fact or law, whether in expression or inducement.
§ 35-15-416. Modification to Achieve Settlor’s Tax Objectives
To achieve the settlor’s tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor’s probable intention. The court may provide that the modification has retroactive effect.