Oregon Statutes 130.305 – UTC 502. Spendthrift provision
(1) A spendthrift provision is valid only if the provision restrains both voluntary and involuntary transfer of a beneficiary‘s interest.
Terms Used In Oregon Statutes 130.305
- 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
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Trustee: A person or institution holding and administering property in trust.
(2) 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 of the beneficiary’s interest.
(3) A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision. Except as otherwise provided in ORS § 130.300 to 130.325, a creditor or assignee of a beneficiary may not reach the interest of a beneficiary or a distribution by the trustee before the distribution is received by the beneficiary.
(4) A settlement agreement entered into under ORS § 130.045 is not, by itself, a transfer in violation of a valid spendthrift provision. [2005 c.348 § 40; 2013 c.529 § 7]