Illinois § 502 Spendthrift provision

Illinois Statutes

§ 502 — Spendthrift provision

Illinois § 502

JurisdictionIllinois

TopicRIGHTS AND REMEDIES

Ch. 760TRUSTS AND FIDUCIARIES

Act 760 ILCS 3/Illinois Trust Code.

Art.Article 5 - Creditor's Claims; Spendthrift and Discretionary Trusts

This text of Illinois § 502 (Spendthrift provision) is published on Counsel Stack Legal Research, covering Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

760 Ill. Comp. Stat. 502 (2026).

Text

(a)A spendthrift provision is valid only if it prohibits 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, is 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.

(d)A valid spendthrift provision does not prevent the appointment of interests through the exercise of a power of appointment.

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(a) A spendthrift provision is valid only if it prohibits 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, is 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. (d) A valid spendthrift provision does not prevent the appointment of interests through the exercise of a power of appointment.