A. If a trust created on or after November 1, 2010, contains a spendthrift provision, a creditor shall not attach present and future mandatory distributions from the trust. A creditor shall wait until a distribution is received by a beneficiary before attachment. However, an exception creditor may attach present and future mandatory distributions for child support.
B. If a trust does not contain a spendthrift provision, a creditor may attach present and future mandatory distributions from the trust at the trust level.
C. A beneficiary holding a mandatory distribution interest may enforce the interest. A court may review the distribution discretion of a trustee if the trustee acts beyond the bounds of reasonableness.
Added by Laws 2010, c. 280, § 7, eff. Nov. 1, 2010.
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