§ 60-175.87. Creditor attachment of mandatory distributions.  


Latest version.
  • A.  If a trust created on or after November 1, 2010, contains a spendthrift provision, a creditor shall not attach present and future mandatory distributions from the trust.  A creditor shall wait until a distribution is received by a beneficiary before attachment.  However, an exception creditor may attach present and future mandatory distributions for child support.

    B.  If a trust does not contain a spendthrift provision, a creditor may attach present and future mandatory distributions from the trust at the trust level.

    C.  A beneficiary holding a mandatory distribution interest may enforce the interest.  A court may review the distribution discretion of a trustee if the trustee acts beyond the bounds of reasonableness.

Added by Laws 2010, c. 280, § 7, eff. Nov. 1, 2010.