55-1-26. Judicial foreclosure of beneficial interests, powers of appointment, and reserved powers prohibited--Creditors may not reach powers of appointment or remainder interests.
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/sd/title-55/chapter-55-1/55-1-26A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Regardless of whether or not a trust contains a spendthrift provision:
(1)No beneficial interest, power of appointment, or reserved power in a trust may be judicially foreclosed;
(2)No creditor may reach a power of appointment or a remainder interest at the trust level. The creditor shall wait until the funds are distributed before the creditor may reach the funds; and
(3)No power of appointment is property or an interest in property.
For purposes of this section, power of appointment is held by a person to whom a power has been given, not the settlor.