§ 633A.2302 — Spendthrift protection recognized

Iowa § 633A.2302

• Jurisdiction: Iowa
• Title XV: JUDICIAL BRANCH AND JUDICIAL PROCEDURES
• Ch. 633A: IOWA TRUST CODE

Text

Except as otherwise provided in section 633A.2303:
1. A term of a trust providing that the interest of a beneficiary is held subject to a
“spendthrift trust”, or words of similar import, is sufficient to restrain both voluntary and
involuntary transfer, assignment, and encumbrance of the beneficiary’s interest.
2. A beneficiary shall not transfer, assign, or encumber an interest in a trust in violation
of a valid spendthrift provision, and a creditor or assignee of the beneficiary of a spendthrift
trust shall not reach the interest of the beneficiary or a distribution by the trustee before its
receipt by the beneficiary.
3. Notwithstanding subsections 1 and 2, the interest of a beneficiary of a valid spendthrift
trust may be reached to satisfy an enforceable claim against the beneficiary or the
beneficiary’s estate for either of the following:
a. Services or supplies for necessaries provided to or for the beneficiary.
b. Tax claims by the United States to the extent authorized by federal law or an applicable
provision of the Code.