456.5-502. Spendthrift provision.
Spendthrift provision.
456.5-502. 1. A spendthrift provision is valid if it restrainseither the voluntary or involuntary transfer or both the voluntary andinvoluntary transfer of a beneficiary's interest.
2. A term of a trust providing that the interest of a beneficiary isheld subject to a "spendthrift trust," or words of similar import, issufficient to restrain both voluntary and involuntary transfers of thebeneficiary's interest.
3. A beneficiary may not transfer an interest in a trust in violationof a valid spendthrift provision and, except as otherwise provided insections 456.5-501 to 456.5-507, a creditor or assignee of the beneficiarymay not reach the interest or a distribution by the trustee before itsreceipt by the beneficiary.
(L. 2004 H.B. 1511)Effective 1-01-05