Section 55-1-26 - Judicial foreclosure of beneficial interests, powers of appointment, and reservedpowers prohibited--Creditors may not reach powers of appointment or remainderinterests.
55-1-26. Judicial foreclosure of beneficial interests, powers of appointment, and reserved powers prohibited--Creditors may not reach powers of appointment or remainder interests. Regardless of whether or not a trust contains a spendthrift provision:
(1) No beneficial interest, power of appointment, or reserved power in a trust may be judicially foreclosed;
(2) No creditor may reach a power of appointment or a remainder interest at the trust level. The creditor shall wait until the funds are distributed before the creditor may reach the funds; and
(3) No power of appointment is a property interest.
Source: SL 2007, ch 280, § 3; SL 2009, ch 252, § 3.