[citation needed] Some creditors may compel payment out of the trust, particularly those who supply the beneficiary with "necessaries" (usually food and shelter, but sometimes clothing and transportation, if these are not extravagant).
Most jurisdictions also permit the invasion of spendthrift trust assets to satisfy awards of child support and alimony.
[citation needed] For example, Texas law provides: Further, laws in some states (like Texas) are worded so broadly that anyone transferring property to the trust might be deemed to be a "creator" (i.e., settlor, grantor, or trustor), not merely the person or persons who originally set up the trust.
Under Chapter 166, an individual can serve as the settlor, trustee, and beneficiary of the trust.
This network of laws is specifically designed to protect trust assets from the claims of any creditor.
Moreover, the creditor can only sustain its claim if it can prove by clear and convincing evidence (a tough evidentiary standard) that the transfer was made as a fraudulent conveyance.
The following other states now have a DAPT statute: Delaware, Mississippi (as of July 31, 2014, see Miss.
), South Dakota, Wyoming, Tennessee, Utah, Oklahoma, Colorado, Missouri, Rhode Island and New Hampshire.
For example, the Nevada Property Code provides: In Texas, the Texas Property Code[4] provides: A clause in the terms of a trust agreement that complies with the above-quoted statute is an example of what the law calls an "anti-alienation provision."