General Laws

[Text of section applicable as provided by 2012, 140, Sec. 66.]

Section 502. Spendthrift provision

[Subsection (a) applicable as provided by 2012, 140, Sec. 63.]

(a) A spendthrift provision shall be 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, shall be 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.