Sec. 502. Spendthrift provision.
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/il/chapter-760/act-3/502A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Sec. 502. Spendthrift provision.
(a)A spendthrift provision is valid only if it prohibits 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 may not transfer an interest in a trust in violation of a valid spendthrift provision and, except as otherwise provided in this Article, a creditor or assignee of the beneficiary may not reach the interest or a distribution by the trustee before its receipt by the beneficiary.
(d)A valid spendthrift provision does not prevent the appointment of interests through the exercise of a power of appointment.