State Codes and Statutes
Statutes > North-carolina > Chapter_36C > GS_36C-5-502§ 36C‑5‑502. Spendthrift provision.
(a) A spendthriftprovision is valid only if it restrains both voluntary and involuntary transferof a beneficiary's interest.
(b) A term of a trustproviding that the interest of a beneficiary is held subject to a "spendthrifttrust", or words of similar import, is sufficient to restrain bothvoluntary and involuntary transfer of the beneficiary's interest.
(c) A beneficiary maynot transfer an interest in a trust in violation of a valid spendthriftprovision and, except as otherwise provided in this Article, a creditor orassignee of the beneficiary may not reach the interest or a distribution by thetrustee before its receipt by the beneficiary. (2005‑192, s. 2.)
