Illinois § 502 Spendthrift provision

Illinois Statutes

§ 502 — Spendthrift provision

Illinois·Topic RIGHTS AND REMEDIES·Ch. 760 TRUSTS AND FIDUCIARIES·Act 760 ILCS 3/ Illinois Trust Code.·Art. Article 5 - Creditor's Claims; Spendthrift and Discretionary Trusts

(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.

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