§ 36C-5-501. Rights of beneficiary's creditor or assignee. - North Carolina Statutes

Article 5.

Creditors' Claims;Spendthrift and Discretionary Trusts.

§ 36C‑5‑501. Rights of beneficiary's creditor or assignee.

(a)        Except as providedin subsection (b) of this section, the court may authorize a creditor orassignee of the beneficiary to reach the beneficiary's interest by attachmentof present or future distributions to or for the benefit of the beneficiary orother means. The court may limit the award to that relief as is appropriateunder the circumstances.

(b)        Subsection (a) ofthis section shall not apply, and a trustee shall have no liability to anycreditor of a beneficiary for any distributions made to or for the benefit ofthe beneficiary, to the extent that a beneficiary's interest is protected orrestricted by any of the following:

(1)        A spendthriftprovision.

(2)        A discretionarytrust interest as defined in G.S. 36C‑5‑504(a)(2).

(3)        A protective trustinterest as described in G.S. 36C‑5‑508. (2005‑192, s. 2; 2007‑106,s. 19.)