§502.__Spendthrift provision

1.__Restrains voluntary and involuntary transfers.__A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary's interest.

2.__Terminology.__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.

3.__No transfer by beneficiary; creditors and assignees.__A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision and, except as otherwise provided in this chapter, a creditor or assignee of the beneficiary may not reach the interest or a distribution by the trustee before its receipt by the beneficiary.

§503.__Exceptions to spendthrift provision

There are no exceptions to spendthrift provisions except as provided in sections 504, 505 and 506.

§504.__Discretionary trusts; effect of standard

1.__Creditor may not compel distribution.__Whether or not a trust contains a spendthrift provision, a creditor of a beneficiary may not compel a distribution that is subject to the trustee's discretion, even if:

A.__The discretion is expressed in the form of a standard of distribution; or

B.__The trustee has abused the discretion.

2.__Right of beneficiary not limited.__This section does not limit the right of a beneficiary to maintain a judicial proceeding against a trustee for an abuse of discretion or failure to comply with a standard for distribution.

§505.__Creditor's claim against settlor