§36-1-18 Trust estates; debts of beneficiaries; spendthrift trusts; nonmerger of trusts.
§36-1-18. Trust estates; debts of beneficiaries; spendthrift trusts; nonmerger of trusts.
(a) Estates held in trust are subject to the debts of the beneficiary of the trust, except where the creator has expressly provided in the trust instrument words substantially to the effect that:
(1) The income or principal, or both, may only be applied to the health, education, support or maintenance of a beneficiary, other than the creator of the trust, for the life of the beneficiary, or the income or principal, or both, may only be applied at the discretion of the trustee to or for the benefit of a beneficiary, other than the creator of the trust, for the life of the beneficiary, for a fixed term of years or other fixed duration of time, or a fixed annuity amount or a unitrust amount computed under a formula as a percentage of fair market value of assets in the trust, regardless of whether the same is income, principal, or both, may only be applied to or for the benefit of a beneficiary, other than the creator of the trust, for the life of the beneficiary or for a fixed term of years or other fixed duration of time; and
(2) The trust is not subject to the liability of or alienation by the beneficiary or beneficiaries.
(b) A trust, whenever created, may not be set aside or terminated solely on the assertion of a creditor that the trustee or trustees are the same person or persons as the beneficiary or beneficiaries of the trust.
(c) This section applies to any trust established by an instrument executed on or after the first day of July, two thousand one, except as otherwise expressly provided in the terms of the trust.
(d) This section applies to any trust established under an instrument executed prior to the first day of July, two thousand one, when the trustee elects, in his or her sole discretion, to administer the trust pursuant to the provisions of this section.
(e) Except as provided in subsection (c) of this section, this section may not be construed to create or imply a duty on a trustee to administer the trust pursuant to the provisions of this section, and a trustee may not be held liable for refusing to administer a trust pursuant to the provisions of this section.