Transfer of Beneficiary interest

Question 1

Voluntary Transfers—Gifts and Sales

Answer 1

Absent restrictions by statute or by the trust instrument, a beneficiary may freely transfer their interest in the trust. The assigned interest
remains subject to all previous conditions and limitations.

Question 2

Involuntary Transfers—Creditors

Answer 2

Unless statute or the trust provides otherwise, the beneficiary’s creditors
may reach the beneficiary’s interest in the trust. The interest is
subject to judicial sale. To avoid this, a court may order the trustee to
pay the beneficiary’s income to the creditors until the debt is satisfied.