New Hampshire § 564-B:5-502 Creditor's Claim Against a Beneficiary of a Trust Containing a Spendthrift Provision

New Hampshire Statutes

§ 564-B:5-502 — Creditor's Claim Against a Beneficiary of a Trust Containing a Spendthrift Provision

New Hampshire·Title LVI PROBATE COURTS AND DECEDENTS' ESTATES·Ch. 564-B NEW HAMPSHIRE TRUST CODE·Subdivision ARTICLE 5CREDITOR'S CLAIMS; SPENDTHRIFT AND DISCRETIONARY TRUSTS

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

(d)To the extent that a beneficiary's interest in a trust is subject to a spendthrift provision, a creditor or assignee of the beneficiary may not reach:

(1)The beneficiary's interest in the trust; or

(2)A distribution from the trust before its receipt by the beneficiary.

(e)To the extent that a beneficiary's interest in a trust

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(a) A spendthrift provision is valid only if it restrains 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.
(d) To the extent that a beneficiary's interest in a trust is subject to a spendthrift provision, a creditor or assignee of the beneficiary may not reach:
(1) The beneficiary's interest in the trust; or
(2) A distribution from the trust before its receipt by the beneficiary.
(e) To the extent that a beneficiary's interest in a trust is subject to a spendthrift provision, the beneficiary's interest:
(1) Is not property for purposes of RSA 458:16-a, I; and
(2) Shall not be subject to any forced heirship, legitime, forced share, or any similar heirship rights under the laws of any jurisdiction.
(f) To the extent that a beneficiary's interest in a trust is subject to a spendthrift provision, a court may authorize an exception creditor of the beneficiary to attach present or future distributions to or for the benefit of the beneficiary.
(1) For purposes of this subsection (f), the following definitions shall apply:
(A) "Exception creditor" means, with respect to a beneficiary:
(i) An individual to the extent that there is a judgment or court order against the beneficiary for child support in this or any other state;
(ii) A spouse or former spouse to the extent that there is a judgment or court order against the beneficiary for basic alimony;
(iii) A judgment creditor who has provided services for the protection of a beneficiary's interest in the trust; or
(iv) This state or the United States for a claim against the beneficiary to the extent that a statute of this state or federal law so provides.
(B) "Basic alimony" means the portion of alimony attributable to the most basic food, shelter, and medical needs of the spouse or former spouse if the judgment or court order expressly specifies that portion.
(2) Attachment of present or future distributions is the exception creditor's exclusive remedy against the beneficiary's interest in the trust.
(3) The court may limit the relief as is appropriate under the circumstances.
(4) Subsection (d)(2) shall not apply to an exception creditor.

New Hampshire § 564-B:5-502 (Creditor's Claim Against a Beneficiary of a Trust Containing a Spendthrift Provision) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.