3B:31-36. Spendthrift Provision.

3B:31-36. 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 the 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. 

d. A spendthrift provision is valid even though a beneficiary is named as the sole trustee or as a co-trustee of the trust. 

e. A valid spendthrift provision does not prevent the appointment of interests through the exercise of a power of appointment.