Spendthrift Trusts: It's Time to Codify the Compromise

I. Introduction II. Restraints on the Alienation of Interests in Trust ... A. Spendthrift Provisions ... B. Protective, Discretionary, and Support Provisions as Alternatives III. The Contours of the Debate ... A. Arguments Pro and Con: Proponents of Spendthrift Provisions v. The Loyal Opposition … 1. Dicta as Historical Imperative ... 2. Should Spendthrift Provisions Be Treated as Invalid Restraints on Alienation? ... 3. The Notice Argument ... 4. The Incident of Ownership Argument ... B. Where the Dust Has Settled ... 1. Claimants Likely to Prevail—the Restatement List ... 2. Pensions and Retirement Plans: The ERISA Exception IV. Codifying the Compromise ... A. The Wheels of Justice Grind Slowly ... B. A Proposal for a Statutory Solution V. Conclusion