SECTION 502. Spendthrift provision  


Latest version.
  • (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.