Sec. 2. (a) The
settlor may provide in the terms of the trust that the interest of a
beneficiary may not be either voluntarily or involuntarily transferred before payment or delivery of the interest to the
beneficiary by the
trustee.
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Terms Used In Indiana Code 30-4-3-2
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Beneficiary: has the meaning set forth in IC 30-2-14-2. See Indiana Code 30-4-1-2
- Legacy: A gift of property made by will.
- Settlor: means a person who establishes a trust including the testator of a will under which a trust is created. See Indiana Code 30-4-1-2
- Trust estate: means the trust property and the income derived from its use. See Indiana Code 30-4-1-2
(c) A protective provision similar to that authorized by subsection (a) prevents a creditor of the settlor from satisfying a claim from the settlor’s interest in the trust estate when the settlor is also a beneficiary of the trust if the trust is one (1) of the following:
(1) A trust that meets both of the following requirements:
(A) The trust is a qualified trust under 26 U.S.C. § 401(a).
(B) The limitations on each beneficiary’s control over the beneficiary’s interest in the trust complies with 29 U.S.C. § 1056(d).
(2) A legacy trust established under IC 30-4-8.
(d) A trust containing terms authorized under subsection (a) may be referred to wherever appropriate as a trust with protective provisions.
Formerly: Acts 1971, P.L.416, SEC.4. As amended by P.L.287-1987, SEC.2; P.L.221-2019, SEC.2.
