Asked by Tianna Lopes on Jul 21, 2024
Verified
Creditors of the beneficiary of a spendthrift trust can attach the income of the trust before or after the beneficiary receives it, but they cannot reach the trust fund itself.
Spendthrift Trust
A trust designed to provide financial support to a beneficiary while protecting the trust assets from the beneficiary's creditors or from being spent recklessly by the beneficiary.
Creditors
Individuals or entities to whom money is owed by a debtor or the company.
- Recognize the roles and powers of parties involved in trusts and estates.
- Understand the rights of beneficiaries and fiduciaries within trust and estate law.
Verified Answer
MA
Melissa AmadorJul 28, 2024
Final Answer :
False
Explanation :
Creditors cannot attach the income of a spendthrift trust before the beneficiary receives it due to the trust's protective provisions, but they may be able to reach it after it has been distributed to the beneficiary, depending on state laws. However, they generally cannot reach the trust fund itself.
Learning Objectives
- Recognize the roles and powers of parties involved in trusts and estates.
- Understand the rights of beneficiaries and fiduciaries within trust and estate law.