TRUSTS - SPENDTHRIFT TRUSTS - BENEFICIAL INTEREST HELD NOT ATTACHABLE TO MAKE GOOD LIABILITY AS TRUSTEE

Janet Jones was an inactive trustee and one of the beneficiaries of a spendthrift trust. Because of lack of good judgment on the part of her co-trustee, and without any moral fault on her part, Janet was charged with liability for a large sum. Her surety, who paid the succeeding trustee, took an assignment of the rights of the trust estate against Janet Jones and demanded that the trustee pay to it all the income, past, present and future, which the trust instrument gave to such beneficiary. The trustee brought this action for instructions.

Held, as the trust estate was only a creditor of Janet Jones and the will precluded attachment of her beneficial interest by creditors, an exception will not be made in favor of the trust estate or its assignee. Blakemore v. Jones, (Mass. 1939) 22 N. E. (2d) 112.