US Laws, Codes, Statutes & Cases

§ 36C‑5‑508.  Protective trusts.

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

(1)       The beneficiary alienates or attempts to alienate that interest; or

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

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