Powers of Withdrawal, Claims for Set-Off, and Spendthrift Protection

Abstract:     
If a beneficiary of a spendthrift trust has a right to withdraw property from the trust, may the beneficiary’s creditors reach the assets subject to the withdrawal power? That was the principle question recently addressed by the 1st District Court of Appeals in Great American Insurance Company v. Thompson Trust. Also of interest: the case may have involved an offset by the trustee of amounts distributable to the beneficiary to repay amounts owed by the beneficiary to the trust.

Number of Pages in PDF File: 7

Keywords: Spendthrift Trust, Trust, Beneficiary, Withdrawal Power, Offset, Spendthrift Provision, Scott V. Bank One Trust Co., Uniform Trust Code, Ohio Trust Code, Settlor

JEL Classification: K1

Accepted Paper Series