Iowa Code 633A.2302 – Spendthrift protection recognized
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Terms Used In Iowa Code 633A.2302
- 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
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Trustee: A person or institution holding and administering property in trust.
- United States: includes all the states. See Iowa Code 4.1
633A.2302 Spendthrift protection recognized.
Except as otherwise provided in § 633A.2303:
1. 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, assignment, and encumbrance of the beneficiary’s interest.
2. A beneficiary shall not transfer, assign, or encumber an interest in a trust in violation of a valid spendthrift provision, and a creditor or assignee of the beneficiary of a spendthrift trust shall not reach the interest of the beneficiary or a distribution by the trustee before its receipt by the beneficiary.
3. Notwithstanding subsections 1 and 2, the interest of a beneficiary of a valid spendthrift trust may be reached to satisfy an enforceable claim against the beneficiary or the beneficiary’s estate for either of the following:
a. Services or supplies for necessaries provided to or for the beneficiary.
b. Tax claims by the United States to the extent authorized by federal law or an applicable provision of the Code.
99 Acts, ch 125, §23, 109
C2001, §633.2302
2004 Acts, ch 1015, §28; 2005 Acts, ch 38, §54
CS2005, §633A.2302
2008 Acts, ch 1119, §22
Except as otherwise provided in § 633A.2303:
1. 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, assignment, and encumbrance of the beneficiary’s interest.
2. A beneficiary shall not transfer, assign, or encumber an interest in a trust in violation of a valid spendthrift provision, and a creditor or assignee of the beneficiary of a spendthrift trust shall not reach the interest of the beneficiary or a distribution by the trustee before its receipt by the beneficiary.
3. Notwithstanding subsections 1 and 2, the interest of a beneficiary of a valid spendthrift trust may be reached to satisfy an enforceable claim against the beneficiary or the beneficiary’s estate for either of the following:
a. Services or supplies for necessaries provided to or for the beneficiary.
b. Tax claims by the United States to the extent authorized by federal law or an applicable provision of the Code.
99 Acts, ch 125, §23, 109
C2001, §633.2302
2004 Acts, ch 1015, §28; 2005 Acts, ch 38, §54
CS2005, §633A.2302
2008 Acts, ch 1119, §22