Colo. Rev. Stat. » Title 15
Colorado Revised Statutes

Colo. Rev. Stat. § 15-5-502 (2026)

Spendthrift provision

✓ current as of July 2026
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(1) A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary's interest.

(2) A term of a trust providing that the interest of a beneficiary is held subject to a "spendthrift trust", or words of similar import, is sufficient to restrain both voluntary and involuntary transfer of the beneficiary's interest.

(3) A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision and, except as otherwise provided in this part 5, a creditor or assignee of the beneficiary may not reach the interest or a distribution by the trustee before its receipt by the beneficiary.

(4) A trustee of a trust that is subject to a spendthrift provision may make a distribution that is required or authorized by the terms of the trust by applying the distribution for the beneficiary's benefit. A creditor or assignee of the beneficiary may not reach a distribution that is applied for the beneficiary's benefit, and no trustee is liable to any creditor of a beneficiary for making such a distribution.

(5) Real property or tangible personal property that is owned by the trust but that is made available for a beneficiary's use or occupancy in accordance with the trustee's authority under the terms of the trust is not considered to have been distributed by the trustee or received by the beneficiary for purposes of allowing a creditor or assignee of the beneficiary to reach the property.

Source: L. 2021: Entire part added, (SB 21-162), ch. 170, p. 939, § 1, effective September 7.

Notes of Decisions
Cited in 2 cases (2 in the last 5 years), 2024–2026 · leading case: Bank of Colorado v. Lebsock (Colo. Ct. App. 2026).
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Bank of Colorado v. Lebsock (Colo. Ct. App. 2026). · cites it 8× “It found that David had a future beneficial interest in the Trust, which contained a valid spendthrift provision pursuant to section 15-5-502, C.R.S. 2025. Thus, it found that David “could not legally and, therefore, did not, validly assign his future beneficial interest in the .”
Marriage of Terry (Colo. Ct. App. 2024). “203E, § 502 (West 2012) (emphasis added); § 15-5-502(3), C.R.S. 2024 (emphasis added) .”
— Colo. Rev. Stat. § 15-5-502(1) — 1 case
Bank of Colorado v. Lebsock (Colo. Ct. App. 2026). “It found that David had a future beneficial interest in the Trust, which contained a valid spendthrift provision pursuant to section 15-5-502, C.R.S. 2025. Thus, it found that David “could not legally and, therefore, did not, validly assign his future beneficial interest in the .”
— Colo. Rev. Stat. § 15-5-502(3) — 2 cases
Bank of Colorado v. Lebsock (Colo. Ct. App. 2026). “It found that David had a future beneficial interest in the Trust, which contained a valid spendthrift provision pursuant to section 15-5-502, C.R.S. 2025. Thus, it found that David “could not legally and, therefore, did not, validly assign his future beneficial interest in the .”
Marriage of Terry (Colo. Ct. App. 2024). “203E, § 502 (West 2012) (emphasis added); § 15-5-502(3), C.R.S. 2024 (emphasis added) .”
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