55-545.02 - Spendthrift provision. - Virginia Statutes

§ 55-545.02. Spendthrift provision.

A. A spendthrift provision is valid only if it restrains both voluntary andinvoluntary transfer of a beneficiary's interest.

B. A term of a trust providing that the interest of a beneficiary is heldsubject to a "spendthrift trust," or words of similar import, is sufficientto restrain both voluntary and involuntary transfer of the beneficiary'sinterest.

C. A beneficiary may not transfer an interest in a trust in violation of avalid spendthrift provision and, except as otherwise provided in thisarticle, a creditor or assignee of the beneficiary may not reach the interestor a distribution by the trustee before its receipt by the beneficiary.

(2005, c. 935.)