§ 36C-5-508. Protective trusts. - North Carolina Statutes

§ 36C‑5‑508. Protective trusts.

Except with respect to aninterest retained by the settlor, a "protective trust interest" meansan interest in a trust in which the terms of the trust provide that theinterest terminates or becomes discretionary if:

(1)        The beneficiaryalienates or attempts to alienate that interest; or

(2)        Any creditorattempts to reach the beneficiary's interest by attachment, levy, or otherwise;or

(3)        The beneficiarybecomes insolvent or bankrupt. (2005‑192, s. 2.)