§ 36C-5-502. Spendthrift provision. - North Carolina Statutes

§ 36C‑5‑502. Spendthrift provision.

(a)        A spendthriftprovision is valid only if it restrains both voluntary and involuntary transferof a beneficiary's interest.

(b)        A term of a trustproviding that the interest of a beneficiary is held subject to a "spendthrifttrust", or words of similar import, is sufficient to restrain bothvoluntary and involuntary transfer of the beneficiary's interest.

(c)        A beneficiary maynot transfer an interest in a trust in violation of a valid spendthriftprovision and, except as otherwise provided in this Article, a creditor orassignee of the beneficiary may not reach the interest or a distribution by thetrustee before its receipt by the beneficiary. (2005‑192, s. 2.)