91-9-509 - Settlor as beneficiary of own trust; invalid restraint on transfers; payments for education or support at trustee's discretion; maximum amount accessible by transferees or creditors.
§ 91-9-509. Settlor as beneficiary of own trust; invalid restraint on transfers; payments for education or support at trustee's discretion; maximum amount accessible by transferees or creditors.
(1) If the settlor is a beneficiary of a trust created by the settlor and the settlor's interest in the trust is subject to a provision restraining the voluntary or involuntary transfer of the settlor's interest, the restraint is invalid against transferees or creditors of the settlor. The invalidity of the restraint on transfer does not affect the validity of the trust.
(2) If the settlor is the beneficiary of a trust created by the settlor and the trust instrument provides that the trustee shall pay income or principal or both of the trust for the education or support of the beneficiary or gives the trustee discretion to determine the amount of income or principal or both of the trust to be paid to or for the benefit of the settlor, a transferee or creditor of the settlor may reach the maximum amount of the trust that the trustee could pay to or for the benefit of the settlor under the trust instrument, not exceeding the amount of the settlor's proportionate contribution to the trust.
Sources: Laws, 1998, ch. 460, § 5, eff from and after passage (approved March 23, 1998).