ALIENABILITY OF BENEFICIARY’S INTEREST:
–    Must manifest intent to create inalienability
–    Any interest in trust is assignable (with exceptions)
–    Trustee can create inalienable trust = “spendthrift trust” – most states permit
–    Can be either mandatory, support or discretionary type trust
–    Regulated by state statute –  Prop 112.035
–    Two theories:
•    American – property rights are absolute
–    Not too practical because credit checks don’t show up inter vivos trust and tort claims are different – no decision to make on part of tort recipient
•    England – should have to pay bills (protecting creditors)
–    Sligh
•    Creates exception to inalienability of spendthrift trusts for tort claimaints
•    Ascher REALLY agrees
•    Restatement 2nd is neutral on this issue
–    Child support is another exception
•    This is in the 2nd Restatement
•    Also alimony but less widely accepted than child support
–    Cutting edge law
•    Fam 14.05c:
–    Mandatory payment – child support forced
–    Discretionary trust – child support from INCOME only
–    Schreiber – lawyers’ fees forceable?
•    Creates exception in PA
•    See 2nd Restatement 157c,
•    Lawyers must preserve or benefit the beneficiary’s interests
–    Does not have to be financial benefit
•    Restatement 2nd 157a, b, also allow creditors to get to spendthrift trust for necessities (rent, food, etc.)
•    Rationale in Schreiber:
–    Piercing the trust for benefit is unjust enrichment theory and no benefit creates no unjust enrichment
•    Texas case law (Smith) indicates exception
–    Governmental Claims
•    Restatement 2nd 157d – but preemption covers
•    So Restatement 3rd omits (also not a matter of trust law – up to the Feds and the states)
–    Voluntary/Involuntary Alienation
•    Including one implies including the other
–    Actual distributions become ineffective upon distribution
–    Practical effect of invalid assignment
•    If give interest, once given, assignee can keep it
•    Trustee treats as revocable order to pay assignee