§ 30-4-3-2 — Power to restrain transfer of a beneficiary's interest

(a) The settlor may provide in the terms of the
trust that the interest of a beneficiary may not be either voluntarily or
involuntarily transferred before payment or delivery of the interest to
the beneficiary by the trustee.
(b) Except as otherwise provided in subsection (c), if the settlor is
also a beneficiary of the trust, a provision restraining the voluntary or
involuntary transfer of the settlor's beneficial interest will not prevent
the settlor's creditors from satisfying claims from the settlor's interest
in the trust estate.
(c) A protective provision similar to that authorized by subsection
(a) prevents a creditor of the settlor from satisfying a claim from the
settlor's interest in the trust estate when the settlor is also a beneficiary
of the trust if the trust is one (1) of the following:
(1) A trust that meets both of the following requirements:
(A) The trust is a qualified trust under 26 U.S.C. 401(a).
(B) The limitations on each beneficiary's control over the
beneficiary's interest in the trust complies with 29 U.S.C.
1056(d).
(2) A legacy trust established under IC 30-4-8.
(d) A trust containing terms authorized under subsection (a) may be
referred to wherever appropriate as a trust with protective provisions.
Formerly: Acts 1971, P.L.416, SEC.4. As amended by
P.L.287-1987, SEC.2; P.L.221-2019, SEC.2.