§ 175.85. Spendthrift provision
Oklahoma Statutes AnnotatedTitle 60. Property
60 Okl.St.Ann. § 175.85
§ 175.85. Spendthrift provision
A. A spendthrift provision is valid if it restrains either the voluntary or involuntary transfer of a beneficiary's interest. If the applicable trust instrument so provides, a spendthrift provision may permit the voluntary transfer of an interest of a beneficiary even if the transfer is subject to the approval by the trustee if the trustee is not also the transferring beneficiary. The trustee may honor a transfer even if the transfer violates a spendthrift provision. The trustee shall not be liable to either the beneficiary or the assignee whether or not the trustee honors the transfer.
C. Except for an exception creditor of a support interest under paragraph 4 of Section 8 of this act, if a trust contains a spendthrift provision, a creditor or assignee of the beneficiary may not reach an interest in a trust or a distribution by the trustee until such distribution is received by the beneficiary.
G. A reserved power is not protected by a spendthrift provision. If a reserved power does not constitute a power of withdrawal for the settlor to withdraw income or principal, the holder of a reserved power may exercise the power in the sole and absolute discretion of the holder unencumbered by any court.
Credits
Laws 2010, c. 280, § 5, eff. Nov. 1, 2010.
60 Okl. St. Ann. § 175.85, OK ST T. 60 § 175.85
Current with emergency effective legislation through Chapter 106 of the Second Regular Session of the 59th Legislature (2024). Some sections may be more current, see credits for details.
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