§ 28-72-707 — Restraints on alienation - Exclusive jurisdiction of court

(a) (1) A spendthrift trust or domestic asset protection trust restrains and prohibits the assignment, alienation, acceleration, and anticipation of any interest of the beneficiary under the trust by the voluntary or involuntary act of the beneficiary, by operation of law, or any legal process. (2) The trust estate, corpus, or capital of a spendthrift trust or domestic asset protection trust shall not be assigned, aliened, diminished, or impaired by any alienation, transfer, or seizure that has the effect of cutting off or diminishing the payments, rents, profits, earnings, or income of the trust estate that would otherwise be currently available for the benefit of the beneficiary. (b) A mandatory or discretionary payment by the trustee to the beneficiary shall be made only to or for the benefit of the beneficiary and not: (1) By acceleration or anticipation; or (2) To an assignee of the beneficiary or upon an order, written or oral, given by the beneficiary, regardless of whether the order is a voluntary contractual act of the beneficiary or is through any legal process, including without limitation: (A) A judgment; (B) An execution; (C) An attachment; (D) A garnishment; (E) A bankruptcy; or (F) A contract, tort, or duty. (c) (1) The beneficiary shall not have the power or capacity to make any disposition of the trust income: (A) By his or her order, voluntary or involuntary; or (B) Upon the order or direction of any court or courts, whether bankruptcy or otherwise. (2) The interest of the beneficiary shall not be: (A) Subject to any process of attachment issued against the beneficiary; or (B) Taken in execution under any form of legal process directed against the beneficiary or against the trustee, trust estate, or any part of the income of the trust estate.

Legislative History

Added by Act 2023, No. 291,§ 1, eff. 8/1/2023.