36C-5-501. Rights of beneficiary’s creditor or assignee. (a) Except as provided in subsection (b) of this section, 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 or for the benefit of the beneficiary or other means. The court may limit […]
36C-5-502. 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 involuntary […]
36C-5-503. Exceptions to spendthrift provision. (a) As used in this section, the term "child" includes any person for whom an order or judgment for child support has been entered in this or another state. (b) Even if a trust contains a spendthrift provision, or if the beneficiary’s interest is a discretionary trust interest as defined […]
36C-5-504. Discretionary trusts; effect of standard. (a) In this section: (1) "Child" includes any person for whom an order or judgment for child support has been entered in this or another state. (2) "Discretionary trust interest" means an interest in a trust that is subject to the trustee’s discretion, whether or not the discretion is […]
36C-5-505. Creditor’s claim against settlor. (a) Subject to the other applicable law, whether or not the terms of a trust contain a spendthrift provision or the interest in the trust is a discretionary trust interest as defined in G.S. 36C-504(a)(2) or a protective trust interest as defined in G.S. 36C-5-508, the following rules apply: (1) […]
36C-5-506. Overdue distribution. (a) In this section, "mandatory distribution" means a distribution of income or principal that 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 excludes a distribution subject to the exercise of the trustee’s discretion, regardless of […]
36C-5-507. Personal obligations of trustee. Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. (2005-192, s. 2.)
36C-5-508. Protective trusts. Except with respect to an interest retained by the settlor, a "protective trust interest" means an interest in a trust in which the terms of the trust provide that the interest terminates or becomes discretionary if: (1) The beneficiary alienates or attempts to alienate that interest; or (2) Any creditor attempts to […]
