Section 91-8-508 - Judicial foreclosure of beneficial interests, powers of appointment, and reserved powers prohibited; certain reaches prohibited

Regardless of whether a trust contains a spendthrift provision:(1) No beneficial interest, power of appointment, or reserved power in a trust shall be judicially foreclosed.(2) Trust property subject to a power of appointment is not subject to the claims of the creditors of the holder of the power of appointment or to any permitted appointee unless and until such trust property is distributed pursuant to the exercise of such power of appointment and then only to the extent of the claims of the creditors of the appointee.(3) A creditor or an assignee of a beneficiary of a residuary interest in a trust has no interest in trust property until trust property is actually distributed to such assignee of the residuary interest and therefore trust property is not subject to claims of a creditor of the assignee.(4) A power of appointment is not a property interest.Added by Laws, 2020, ch. 406, SB 2851,§ 66, eff. 7/1/2020.