501C.0502 SPENDTHRIFT PROVISION. (a) A trust has a valid spendthrift provision if: (1) the trust includes a provision that restricts both voluntary and involuntary transfers of a beneficiary’s interest; or (2) by the terms of the trust instrument, the settlor manifests an intention to impose restrictions on both voluntary and involuntary transfers of a beneficiary’s […]
501C.0504 RIGHT TO COMPEL DISTRIBUTION. (a) 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: (1) the discretion is expressed in the form of a standard of distribution; or (2) the trustee has abused the discretion. […]
501C.0505 CREDITOR’S CLAIM AGAINST SETTLOR. 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 […]
501C.0506 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 discretion […]
501C.0507 PERSONAL OBLIGATIONS OF TRUSTEE. Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. History: 2015 c 5 art 5 s 5
