Beneficiary interest subject to creditors?

[eddiealex]

What is the name of your state? California
Is the successor trustee of a revocable trust obligated to pay child support arrearages for a beneficiary of said trust or just to pay the beneficiary and not be liable to the state for this action? Beneficiary is one of four siblings that share equally in their parents estate that was in a revocable trust that has a spendthrift clause.

 

[Dandy Don]

You would need to consult with a California trust attorney to find out what the law is in California, but in some states a public agency is a protected creditor who would be eligible to be paid, regardless of the spendthrift clause.

Are you the successor trustee?

Has the child support agency requested payment for the arrearages? If so, it is better to pay the agency so that the matter can be cleared up entirely (so they can forward the monies to the beneficiary and have it be a matter of offical record) than to pay the beneficiary directly, or perhaps you could discuss with the agency your intentions to pay the beneficiary directly to see what their reaction would be.