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A.R.S. § 14-10503

When Creditors Can Reach Trust Assets Despite a Spendthrift Clause

Verified April 4, 202657th Legislature, 1st Regular Session

Even with a spendthrift clause, Arizona law lets certain creditors reach trust payouts. A child with a support order or a creditor who protected the trust interest can petition the court. Special needs trusts are shielded from these exceptions.

Title 14, ARIZONA TRUST CODE

azleg.gov

The Exceptions Arizona Recognizes

Spendthrift trusts are powerful, but they are not absolute. Arizona carves out limited exceptions where public policy overrides the protection.

The most important exception involves child support. A beneficiary cannot use the spendthrift clause to avoid paying court-ordered support.

Even if a trust contains a spendthrift provision, a beneficiary's child who has a judgment or court order against the beneficiary for support or maintenance, or a judgment creditor who has provided services relating to the protection of a beneficiary's interest in the trust, may obtain from a court an order attaching present or future distributions to or for the benefit of the beneficiary only for these matters.

A.R.S. § 14-10503(A)

This means a child owed support can ask a judge to direct trust payouts toward that debt. An attorney who provided services to protect the trust interest can also seek payment. These exceptions are narrow by design.

Special Needs Trusts Get Extra Protection

Arizona shields special needs trusts from the child support exception. As a result, trust assets set aside for a beneficiary with a disability stay available for their care.

The statute also addresses government claims. A spendthrift clause does not block claims by Arizona or the United States unless a specific state or federal law says so.

How This Affects Trust Planning

Families creating a trust should know the limits of spendthrift protection. Voluntary and involuntary transfers are generally blocked. However, child support can still reach trust income.

The definition of "child" in this section is broad. It includes any person covered by a valid child support order from Arizona or any other state.

14-10503. Exceptions to spendthrift provision; definition A. Even if a trust contains a spendthrift provision, a beneficiary's child who has a judgment or court order against the beneficiary for support or maintenance, or a judgment creditor who has provided services relating to the protection of a beneficiary's interest in the trust, may obtain from a court an order attaching present or future distributions to or for the benefit of the beneficiary only for these matters. B. The exception prescribed in subsection A is unenforceable against a special needs trust. C. A spendthrift provision is unenforceable against a claim of this state or the United States only to the extent a statute of this state or federal law so provides. D. For the purposes of this section, "child" includes any person for whom an order or judgment for child support has been validly entered in this or another state.

This page provides general legal information about Arizona statutes and is not legal advice. For guidance on how this law applies to your situation, speak with a qualified attorney.

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