[ §554D-502] Spendthrift provision.
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[ §554D-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 transfer of the beneficiary's interest.
(c)A beneficiary shall not transfer an interest in a trust in violation of a valid spendthrift provision and, except as otherwise provided in this part, a creditor or assignee of the beneficiary shall not reach the interest or a distribution by the trustee before its receipt by the beneficiary. [L 2021, c 32, pt of §2]