36C-5-508. Protective trusts.
Except with respect to an interest retained by the settlor, a "protective trust interest" means an interest in a trust in which the terms of the trust provide that the interest terminates or becomes discretionary if:
(1) The beneficiary alienates or attempts to alienate that interest; or
(2) Any creditor attempts to reach the beneficiary's interest by attachment, levy, or otherwise; or
(3) The beneficiary becomes insolvent or bankrupt. (2005-192, s. 2.)
Structure North Carolina General Statutes
North Carolina General Statutes
Chapter 36C - North Carolina Uniform Trust Code
Article 5 - Creditors' Claims; Spendthrift and Discretionary Trusts.
§ 36C-5-501 - Rights of beneficiary's creditor or assignee.
§ 36C-5-502 - Spendthrift provision.
§ 36C-5-503 - Exceptions to spendthrift provision.
§ 36C-5-504 - Discretionary trusts; effect of standard.
§ 36C-5-505 - Creditor's claim against settlor.
§ 36C-5-506 - Overdue distribution.