Exceptions to when creditors may have access to the principal of a spendthrift trust may include the following;
• A federal tax lien
• Child support or spousal support
• When a creditor has an enforceable judgment, the creditor may be able to obtain up to 10% of the trust principal
• When the trust income is to be determined to be in excess of the beneficiary’s needs, then the excess amount of income may be subject to creditor’s claims
Here’s more about spendthrift trusts.
If you need representation in a creditor matter, call the Law Offices of Albert Goodwin at 718-509-9774.