North Carolina General Statutes 36C-5-508. Protective trusts
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Terms Used In North Carolina General Statutes 36C-5-508
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
- 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
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.)