RIGHTS OF CREDITORS AND ASSIGNEES OF A BENEFICIARY OF A TRUST
AN ACT to Amend Chapter 117 of the Revised Code of Delaware (1915) Relating to Rights of Creditors and Assignees of a Beneficiary of a Trust, by Inserting a New Section, to be Known as 3907 (b) Sec. 64 (b).
Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:
Sec. 1. That Chapter 117 of the Revised Code of Delaware (1915) be and the same is hereby amended by adding thereto a new section immediately following 3907 (a) Sec. 64 (a), to be known as 3907 (b) Sec. 64 (b) and to read as follows :
3907 (b) Sec. 64 (b). Creditors and assignees of a Beneficiary of a Trust : The creditors of a beneficiary of a trust shall have only such rights against such beneficiary's interest in the trust property or the income therefrom as shall not be denied to them by the terms of the instrument creating or defining the trustor by the laws of this State ; provided, however, that if such beneficiary shall have transferred property to the trust in defraud of his creditors the foregoing shall in no way limit the rights of such creditors with respect to the property so transferred. Every interest in trust property or the income therefrom which shall not be subject to the rights of the creditors of the beneficiary, as aforesaid, shall be exempt from execution, attachment, distress for rent, and all other legal or equitable process instituted by or on behalf of such creditors. Every assignment by a beneficiary of a trust of his interest in the trust property or the income therefrom which is, by the terms of the instrument creating or defining the trust unassignable, shall be void.
Approved April 6, 1933