N.C. Gen. Stat. § 36C-5-508
Protective trusts
Redline — June 1, 2021 → current.View current text →
Current — April 1, 2022
As of June 1, 2021
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:
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
(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
(2) Any creditor attempts to reach the beneficiary’s interest by attachment, levy, or otherwise; or
(3) The beneficiary becomes insolvent or bankrupt.
(3) The beneficiary becomes insolvent or bankrupt.
History
(2005-192, s. 2.)
NORTH CAROLINA COMMENT
This section brings forward with minor modifications the provisions of former G.S. 36A-115(3) with respect to a protective trust in which the beneficiary's interest is not alienable either voluntarily or involuntarily.
Legal Periodicals. - For article, "Allowing Perpetuities in North Carolina," see 31 Campbell L. Rev. 399 (2009).
Official source: North Carolina General Assembly. Reproduced from public-domain North Carolina statutes; confirm against the official source for the current text. Not legal advice.