Transfer of Bennies Interest

Question 1

Alienability

Answer 1

Bennies may free transfer interest
Insolvent trust benny- creditors may levy on interest (judicial sale)- court could order trustee to pay benny’s income to the creditors

Question 2

Spendthrift

Answer 2

if benny is unable to control their spending- benny can’t transfer interest and creditor’s can’t touch trust

Invalid if the settlor is the benny- can’t protect own retained interest from creditors

Question 3

Discretionary trusts

Answer 3

if trustee is given discretion as to apply or withhold payments from trust– creditors only have the same rights as the benny

If Benny gets- creditors can take

However, if settlor has the discretion- creditors can get at the money

Question 4

Support trusts

Answer 4

trustee pays only as much as the benny needs for support-

interest can’t be assigned or reached by creditors