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Spendthrift provision

14A V.S.A. § 502
in effect
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502. Spendthrift provision (a) A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary’s interest. (b) 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. (c) A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision and, except as otherwise provided in this chapter, a creditor or assignee of the beneficiary may not reach the interest or a distribution by the trustee before its receipt by the beneficiary. Added 2009, No. 20, § 1.
Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/section/14A/005/00502Fetched: 10/21/2026

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