Uniform Trust Code

ORS 130.305
UTC 502. Spendthrift provision


(1)

A spendthrift provision is valid only if the provision restrains both voluntary and involuntary transfer of a beneficiary’s interest.

(2)

A term of a trust providing that the interest of a beneficiary is held subject to a spendthrift trust, or words of similar import, is sufficient to restrain both voluntary and involuntary transfer of the beneficiary’s interest.

(3)

A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision. Except as otherwise provided in ORS 130.300 (UTC 501. Rights of beneficiary’s creditor or assignee) to 130.325 (UTC 507. Personal obligations of trustee), a creditor or assignee of a beneficiary may not reach the interest of a beneficiary or a distribution by the trustee before the distribution is received by the beneficiary.

(4)

A settlement agreement entered into under ORS 130.045 (UTC 111. Nonjudicial settlement agreements) is not, by itself, a transfer in violation of a valid spendthrift provision. [2005 c.348 §40; 2013 c.529 §7]

Law Review Citations

42 WLR 187 (2006)

Chapter 130

Law Review Citations

42 WLR 187 (2006)


Source

Last accessed
Jun. 26, 2021