§501. Rights of beneficiary’s creditor or assignee To the extent a beneficiary’s interest is not protected by 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 the beneficiary. The court may limit the award to such relief […]
§502. Spendthrift provision 1. Restrains voluntary and involuntary transfers. A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary’s interest. [PL 2003, c. 618, Pt. A, §1 (NEW); PL 2003, c. 618, Pt. A, §2 (AFF).] 2. Terminology. A term of a trust providing that the interest […]
§503. Exceptions to spendthrift provision There are no exceptions to spendthrift provisions except as provided in sections 504, 505 and 506. [PL 2003, c. 618, Pt. A, §1 (NEW); PL 2003, c. 618, Pt. A, §2 (AFF).] SECTION HISTORY PL 2003, c. 618, §A1 (NEW). PL 2003, c. 618, §A2 (AFF).
§504. Discretionary trusts; effect of standard 1. Creditor may not compel distribution. Whether or not a trust contains a spendthrift provision, a creditor of a beneficiary may not compel a distribution that is subject to the trustee’s discretion, even if: A. The discretion is expressed in the form of a standard of distribution; or […]
§505. Creditor’s claim against settlor 1. Creditor’s claims. Whether or not the terms of a trust contain a spendthrift provision, the following rules apply. A. During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor’s creditors. [PL 2003, c. 618, Pt. A, §1 (NEW); […]
§506. Overdue distribution 1. Definitions. As used in this section, unless the context otherwise indicates, “mandatory distribution” means a distribution of income or principal that a trustee is required to make to a beneficiary under the terms of a trust, including a distribution upon termination of the trust. “Mandatory distribution” does not include a distribution […]
§507. Personal obligations of trustee Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. [PL 2003, c. 618, Pt. A, §1 (NEW); PL 2003, c. 618, Pt. A, §2 (AFF).] SECTION HISTORY PL 2003, c. 618, §A1 (NEW). PL 2003, c. 618, §A2 (AFF).
