Creditors of the Beneficiary of a Spendthrift Trust Can Attach

question 23

True/False

Creditors of the beneficiary of a spendthrift trust can attach the income of the trust before or after the beneficiary receives it, but they cannot reach the trust fund itself.

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Definitions:

Cash Disbursements

Payments in cash made by a business, including expenses, dividend payments, and investment purchases.

Sales

The total amount of goods or services sold by a company, constituting its main source of revenue.

Accounts Receivable Period

The average number of days it takes for a business to collect payments from its credit sales.

Collect

To gather or accumulate money or assets from various sources, often including outstanding debts or payments.