Sec. 52-321. Liability of income of trust fund to creditors. Expenses of trustee.
Sec. 52-321. Liability of income of trust fund to creditors. Expenses of trustee.
Except as provided in sections 52-321a and 52-352b:
(a) If property has been given to trustees to pay over the income to any person,
without provision for accumulation or express authorization to the trustees to withhold
the income, and the income has not been expressly given for the support of the beneficiary or his family, the income shall be liable in equity to the claims of all creditors of
the beneficiary.
(b) Any creditor of the beneficiary who has secured a judgment against the beneficiary may bring an action against him and serve the trustees with garnishee process,
and the court to which the action is returnable may direct the trustees to pay over the
net income derived from the trust estate to the judgment creditor, as the income may
accrue, until the creditor's debt is satisfied.
(c) The court having jurisdiction over the fund may make such an order for payment
pursuant to subsection (b) when the beneficiary is a nonresident of this state, as well as
when the beneficiary is a resident, but in the case of a nonresident beneficiary notice
shall be given to the nonresident of the action against him as provided in section 52-87.
The nonresidence of the beneficiary shall not deprive the court of authority to make
such an order.
(d) If any such trust has been expressly provided to be for the support of the beneficiary or his family, a court of equity having jurisdiction may make such order regarding
the surplus, if any, not required for the support of the beneficiary or his family, as justice
and equity may require.
(e) The defendant trustee in any such action shall be entitled to charge in the administration account of the trust such expenses and disbursements as the court to which the
action is brought determines to be reasonable and proper.
(1949 Rev., S. 8034; 1953, S. 3195d; P.A. 82-160, S. 223; P.A. 91-239, S. 1, 4.)
History: P.A. 82-160 rephrased the section and inserted Subsec. indicators; P.A. 91-239 added "Except as provided in
sections 52-321a and 52-352b".
Cited. 72 C. 45. Cited. 96 C. 70. Cited. 147 C. 561. Does not apply to trust where trustees are to hold and expend
income. 80 C. 237. Statute alone does not give jurisdiction of nonresident. 90 C. 299; 127 C. 112. Only method to create
spendthrift trust; requisites. 95 C. 216; 107 C. 13; 108 C. 425. If any one of conditions is present, income is exempt from
attachment; trust held a spendthrift trust. 107 C. 13; 108 C. 425. Spendthrift trust; income not assignable or attachable.
119 C. 141; Id., 508. No title to income passes to beneficiary unless and until appropriated to him by trustee. Id., 512. Trustee
in determining whether to make expenditures under discretionary trust for support is entitled to take into consideration other
means of support available to beneficiary. 119 C. 138; 133 C. 39. Statute does not protect trust created by settlor from his
own property for his own benefit. 129 C. 222. Trustee's discretion subject to control of court only to extent abused. 133
C. 37. Fact that trust was not explicitly a spendthrift trust held not to mean that protection of the beneficiary was not a
purpose of the trust. 145 C. 634. Agreement of children of settlor of an irrevocable inter vivos trust, which was to be set
up at settlor's death as spendthrift trusts for their benefit, to assign incomes therefrom to pay father's debts after his decease
was unenforceable by executrix of father's estate. Income of spendthrift trusts cannot be assigned by beneficiaries. 157
C. 315. Spendthrift trusts to benefit children of settlor after his decease not changed by letter of children to third party
lender who never relied thereon in making loans to settlor. Spendthrift character of trust prevailed once irrevocable inter
vivos trust was set up. Id. Although this section clearly permits court to order payment by trustee of creditor's claim only
after claim is reduced to judgment, it does not bar equitable relief short of actual payment during pendency of action. 173
C. 276. Cited. Id., 276. Sec. 52-304 et seq. cited. 209 C. 15.
Cited. 32 CA 152.
Statute contemplates existing trust. 7 CS 308. Statute does not contemplate trusts where settlor is beneficiary or where
settlor is one beneficiary and payments to him are interwoven with payments to the others; here the entire provision for
payment was held invalid. 10 CS 147. Cited. 37 CS 566.
Burden is on plaintiff to show spendthrift trust was intended. 4 Conn. Cir. Ct. 402.