§ 501. Rights of beneficiary’s creditor or assignee
§ 501. Rights of beneficiary’s creditor or assignee To the extent a beneficiary’s interest is not protected by a spendthrift provision, the Probate Division of the Superior 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 […]
§ 502. Spendthrift provision
§ 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 […]
§ 503. Exceptions to spendthrift provision
§ 503. Exceptions to spendthrift provision (a) 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 who has a judgment or court order against the beneficiary for support or […]
§ 504. Discretionary trusts; effect of standard
§ 504. Discretionary trusts; effect of standard (a) 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 […]
§ 505. Creditor’s claim against settlor
§ 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 […]
§ 506. Overdue distribution
§ 506. Overdue distribution (a) In this section, “mandatory distribution” means a distribution of income or principal which the trustee is required to make to a beneficiary under the terms of the trust, including a distribution upon termination of the trust. The term does not include a distribution subject to the exercise of the trustee’s […]
§ 507. Personal obligation of trustee
§ 507. Personal obligation of trustee Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. (Added 2009, No. 20, § 1.)
§ 416. Modification to achieve settlor’s tax objectives
§ 416. Modification to achieve settlor’s tax objectives The Probate Division of the Superior Court may modify the terms of a trust to achieve the settlor’s tax objectives if the modification is not contrary to the settlor’s probable intention. The Probate Division of the Superior Court may provide that the modification has retroactive effect. (Added […]
§ 417. Combination and division of trusts
§ 417. Combination and division of trusts After notice to the qualified beneficiaries, a trustee may combine two or more trusts into a single trust or divide a trust into two or more separate trusts if the result does not impair rights of any beneficiary or adversely affect achievement of the purposes of the trust. […]
§ 418. Intentional and unlawful killing; termination of interest in trust
§ 418. Intentional and unlawful killing; termination of interest in trust (a) A person who commits an intentional and unlawful killing shall forfeit an interest in a trust: (1) to the extent the trust was funded by the victim of the intentional and unlawful killing or would be funded by the victim’s estate; (2) to […]