Alienability and Creditor Trust

Question 1

Spend Thrift

Answer 1

precludes the beneficiary from voluntarily or involuntarily transferring his interest in the trust and his creditor are precluded from reaching it to satisfy their claim.

Are in which, by statute more often virtue of the trust, the beneficiary is unable voluntarily or involuntarily to transfer his interest in the trust.

He cannot sell or give away his right to future income or capital, and his creditor are unable to collect or attach rights.

Question 2

Discretionary Support Trust

Answer 2

Where a trustee is given discretion whether to apply or withhold payments to the beneficiary, the beneficiary creditors or assignee have the same rights as the beneficiary.

Question 3

Discretionary Support Trust

Creditors Rights

Answer 3

1) Before Trustee can exercise Discretion- interest cannot be reached
2) After trustee exercise discretion= payment made to creditor
3) Creditor may reach discretionary interest created for settlor.