Nevada Spendthrift Trust

Nevada is the only state with an intact spendthrift trust law. All other states have legislated numerous changes to their spendthrift trust laws destroying the intended purpose of most all residents that formed those trusts. Also, note that if your trust is revocable or is subject to modification, the assets of the trust may be seized.

Nevada’s spendthrift trust statutes are the most protective in the U.S.:
• may not be pierced for child support or spousal support. NRS § 21.080, 155.120
• may not be pierced for creditor of the beneficiary. NRS § 21.080, 166.120.
• may not be pierced by the state or federal governments. NRS § 21.080, 166.120.
• does not restrict the amount of money that may be paid to the beneficiary without being seized. NRS § 166.090, 166.110(2).
•since the Nevada spendthrift trust would be irrevocable and not subject to modification trust assets may not be seized as in states with revocable trusts.
• most important, a Nevada spendthrift trust allows payment of trust funds either directly to the beneficiary or for the benefit of the beneficiary (for example directly to creditors of the beneficiary), putting no funds into the hands of the beneficiary that could then be seized. NRS 166.040(1), 166.110(1).
•since distributions of assets of a Nevada spendthrift trust are subject to the discretion of the trustee, this discretion prevents creditors from seeking a court ordering a distribution that could then be seized. NRS §§ 166.110, 166.120.
• Self-Settled Trusts - Except for Nevada all other states with statutes for spendthrift trusts have ruled that self-settled trusts, trusts established by the beneficiary, may be he pierced by creditors to take possession of trust assets. The effect of such seizure capability effectively destroys the benefits of self-settled spendthrift trusts, except Nevada. Moving those assets into a Nevada Spendthrift Trust wold prevent such attack two (2) years after transfer of assets into the Nevada Spendthrift Trust. NRS § 166.170. A Nevada self-settled trust must: have contact with Nevada, such as assets or trustee in Nevada or at least partial administration of the trust in Nevada. NRS §§ 166.015.

Nevada Spendthrift Trust

$650

U.S. State Limitations and Exceptions

Consult with your attorney or a Nevada attorney if you have any questions. Most all other state’s spendthrift trust laws lack the Nevada protections listed above.

Alabama Ala. Code § 19-3B-502-505(a)(2)
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Alaska Alaska Stat. § 34.40.110
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Arizona Ariz. Rev. Stat §§ 14-7401-7705, 10502-10604
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Arkansas Ark. Code Ann. § 28-73-501-604
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
California Cal. Prob. Code §§ 15300-15309
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Colorado Colo. Rev. Stat. § 38-10-111
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Connecticut No relevant statute
Delaware Del. Code Ann. Tit. 12, § 3531-3549
May allow the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
DC D.C. Code § 19-1305.01-1305.05
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Florida Fla. Stat. § 736.0502-0505
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Georgia Ga. Code Ann. § 53-12-28(c)
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Hawaii No relevant statute
Idaho Idaho Code §§ 15-7-502(4), 55-905
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; self-settled trusts are void.
Indiana Ind. Code § 30-4-3-2(b)
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Iowa Iowa Code §§ 633A.2301-2307
May allow the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Illinois 735 Ill. Comp. Stat. § 5/2-1403-1404
May allow the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; self-settled trusts are void.
Kansas Kan. Stat. Ann. § 58a-501-507
May allow the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Kentucky Ky. Rev. Stat. Ann. § 381.180(7)(a)
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Louisiana La. Rev. Stat. Ann. § 9:2001-2007
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Maine Me. Rev. Stat. Ann. Tit. 18-B, $ 501-505
May allow the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Maryland No relevant statute
Massachusetts No relevant statute
Michigan No relevant statute
Minnesota No relevant statute
Mississippi Miss. Code Ann. § 91-9-501-511
May allow the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Missouri Mo. Rev. Stat. § 456.5-501-505
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Montana Mont. Code Ann. § 72-33-301-305
May allow the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Nebraska Neb. Rev. Stat. § 30-3850(a)(2)
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
New Hampshire N.H. Rev. Stat. Ann § 564-B:5-502-505(a)(2)
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
New Jersey N.J. Stat. Ann. §§ 3B:11-1,25:2-1(a)
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; self-settled trusts are void.
New Mexico N.M. Stat. Ann. § 46A-5-501-505(A)(2)
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
New York N.Y. Est. Powers & Trusts Law § 7-3.1(a)
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
North Carolina N.C. Gen. Stat. § 36C-5-501-505
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
North Dakota N.D. Cent. Code § 59-13-05(1)
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; self-settled trusts are void.
Ohio Ohio Rev. Code Ann. § 5805.01-5805.06(A)(2)
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Oklahoma Okla. Stat. Tit. 60 § 175.25(H)
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Oregon Or. Rev. Stat. § 130.315(1)(b)
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Pennsylvania 20 Pa. Cons. Stat. § 7741-7745
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Rhode Island R.I. Gen. Laws §§ 18-9.2-1 to 18-9.2-7
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
South Carolina S.C. Code Ann. § 72-7-501-607
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
South Dakota S.D. Codified Laws § 5-1-24 to 5-1-42
May allow the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Tennessee Tenn. Code Ann. § 35-15-501-505(a)(2)
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Texas Tex. Prop. Code Ann. § 112.035(d)
May allow the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Utah Utah Code Ann. § 75-7-501-509
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Vermont No relevant statute
Virginia Va. Code Ann. § 55-545.01-545.05
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Washington Wash. Rev. Code § 19.36.020
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; self-settled trusts are void.
West Virginia W.Va Code § 36-1-18
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Wisconsin Wis. Stat. § 701.01-16
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.
Wyoming Wyo. Stat. Ann. § 4-10-103, 4-10-501-506, 4-10-510-523
Allows the trust to be pierced for beneficiary’s obligations for child support, spousal support, creditors of beneficiary, the state and the United States; if the trust allows the beneficiary to compel payments to or for the benefit of beneficiary, the court may order payments for support judgments; disallows self-settled trusts.