N.C. Gen. Stat. § 36C-5-502 : — NORTH CAROLINA UNIFORM TRUST CODECREDITORS' CLAIMS; SPENDTHRIFT AND DISCRETIONARY TRUSTS —5-502 - 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 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.
N.C. Gen. Stat. § 36C-5-502
Added by 2005 N.C. Sess. Laws 192, s. 2, eff. 1/1/2006.