Violations of civil laws often result in imprisonment. Indicate ...

[sam.t96]

Violations of civil laws often result in imprisonment.
  Indicate whether the statement is true or false

Question 2

Margo had only one son, and her husband had predeceased her. The son was reckless and extravagant, but Margo loved him dearly. She left all her property to a trustee in trust for her son and provided that the trust was a spendthrift trust. Margo further provided that the income from the trust was to be paid to her son quarterly until he reached the age of 30 at which time the full trust corpus was to be paid over to him. After Margo's death and before the son had reached the age of 30, the son signed a contract that purported to transfer the entire trust corpus to a finance company. The son was paid for this. The son had also run up many unpaid bills on which he was sued and judgments entered against him. The finance company and the other judgment creditors are seeking to compel the trustee to turn over the trust corpus to them. Decide.

[zogaridan]

Answer to Question 1

FALSE

Answer to Question 2

Where the settlor provides that the trust is a spendthrift trust, the beneficiary cannot transfer his or her interest to anyone. Likewise, creditors cannot reach the interest in such a trust. The name spendthrift provides a clue regarding the nature of this type of trust that is designed to protect a spendthrift from defeating the wishes of the settlor.