(760 ILCS 3/502)
Sec. 502. Spendthrift provision. (a) A spendthrift provision is valid only if it prohibits 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 Article, a creditor or assignee of the beneficiary may not reach the interest or a distribution by the trustee before its receipt by the beneficiary.
(d) A valid spendthrift provision does not prevent the appointment of interests through the exercise of a power of appointment.
(Source: P.A. 101-48, eff. 1-1-20.) |