Cal. Codes
» Probate Code / DIVISION 9. TRUST LAW / PART 2. CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUSTS / CHAPTER 2. Restrictions on Voluntary and Involuntary Transfers
(a)If the settlor is a beneficiary of a trust created by the settlor and the settlor’s interest is subject to a provision restraining the voluntary or involuntary transfer of the settlor’s interest, the restraint is invalid against transferees or creditors of the settlor. The invalidity of the restraint on transfer does not affect the validity of the trust.
(b)If the settlor is the beneficiary of a trust created by the settlor and the trust instrument provides that the trustee shall pay income or principal or both for the education or support of the beneficiary or gives the trustee discretion to determine the amount of income or principal or both to be paid to or for the benefit of the settlor, a transferee or creditor of
the settlor may reach the maximum amount that the trustee could pay to or for the benefit of the settlor under the trust instrument, not exceeding the amount of the settlor’s proportionate contribution to the trust.
(c)For purposes of this chapter, the settlor shall not be considered to be a beneficiary of an irrevocable trust created by the settlor solely by reason of a discretionary authority vested in the trustee to pay directly or reimburse the settlor for any federal or state income tax on trust income or principal that is payable by the settlor, and a transferee or creditor of the settlor shall not be entitled to reach any amount solely by a reason of that discretionary authority.
Notes of Decisions
Cutter v. Seror (In Re Cutter), 398 B.R. 6 (9th Cir. BAP 2008).
· cites it 5× “California Probate Code § 15304 allows such creditors to reach the maximum amount that the trustee of the Debtor’s Trust could pay out to or for the benefit of the settlor.”
In Re Witwer, 148 B.R. 930 (Bankr. C.D. Cal. 1992).
· cites it 2× “Cal.Prob.Code § 15304(a) (West 1991). 7 The policy against these so-called “self-settled” trusts is to prevent an individual from placing his or her property beyond the reach of creditors while still enjoying the use and benefits of such property.”
In Re Phillips, 206 B.R. 196 (Bankr. N.D. Cal. 1997).
· cites it 3× “The California Legislature confirmed the rule of Nelson in California Probate Code section 15304(a) which states, in part: If the settlor is a beneficiary of a trust created by the settlor and the settlor’s interest is subject to a provision restraining the voluntary or…”
In Re Barnes, 275 B.R. 889 (Bankr. E.D. Cal. 2002).
“” California Probate Code § 15304(a) provides: If the settlor is a beneficiary of a trust created by the settlor and the settlor’s interest is subject to a provision restraining the voluntary or involuntary transfer of the settlor’s interest, the restraint is invalid against…”
In re Bogetti, 349 B.R. 14 (Bankr. E.D. Cal. 2006).
· cites it 3× “See Cal. Probate Code § 15304 (a) (making self-settled spendthrift trusts unenforceable).”
In Re Kuraishi, 237 B.R. 172 (Bankr. C.D. Cal. 1999).
· cites it 3× “” Cal. Prob. Code § 15304 (a) (West 1999). The definition section of the CPC excludes from the definition of “trusts” those that are for the primary purpose of paying pensions or employee benefits of any kind.”
Walgren v. Dolan, 226 Cal. App. 3d 572 (Cal. Ct. App. 1990).
“3 Probate Code section 15304. 4 ProbateCode sections 18200, 18201.”
Todd Frealy v. Rick Reynolds, 779 F.3d 1028 (9th Cir. 2015).
“See Cal. Prob.Code § 15304 (invalidating the restraint against transfer where the beneficiary is also the settlor); id.”
Roberts v. Harris (In Re Harris), 101 B.R. 210 (Bankr. E.D. Cal. 1989).
“2d 1021 (1949); California Probate Code § 15304(a)). Thus, in the case at bar, although a valid trust conceivably might have existed at the time of rec-ordation, any transfer of a property interest by the Debtors at that time to that *216 Trust would have been illusory because…”
Ammco Ornamental Iron, Inc. v. Wing, 26 Cal. App. 4th 409 (Cal. Ct. App. 1994).
“Probate Code section 15304 provides a settlor may not create a spendthrift trust for himself or herself.”
Cal. Probate Code § 15304(a): 11 cases
In Re Witwer, 148 B.R. 930 (Bankr. C.D. Cal. 1992).
“Cal.Prob.Code § 15304(a) (West 1991). 7 The policy against these so-called “self-settled” trusts is to prevent an individual from placing his or her property beyond the reach of creditors while still enjoying the use and benefits of such property.”
In Re Phillips, 206 B.R. 196 (Bankr. N.D. Cal. 1997).
“The California Legislature confirmed the rule of Nelson in California Probate Code section 15304(a) which states, in part: If the settlor is a beneficiary of a trust created by the settlor and the settlor’s interest is subject to a provision restraining the voluntary or…”
In Re Barnes, 275 B.R. 889 (Bankr. E.D. Cal. 2002).
“” California Probate Code § 15304(a) provides: If the settlor is a beneficiary of a trust created by the settlor and the settlor’s interest is subject to a provision restraining the voluntary or involuntary transfer of the settlor’s interest, the restraint is invalid against…”
Cutter v. Seror (In Re Cutter), 398 B.R. 6 (9th Cir. BAP 2008).
“California Probate Code § 15304 allows such creditors to reach the maximum amount that the trustee of the Debtor’s Trust could pay out to or for the benefit of the settlor.”
Cal. Probate Code § 15304(b): 3 cases
Cutter v. Seror (In Re Cutter), 398 B.R. 6 (9th Cir. BAP 2008).
“California Probate Code § 15304 allows such creditors to reach the maximum amount that the trustee of the Debtor’s Trust could pay out to or for the benefit of the settlor.”
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