Connecticut General Statutes

Conn. Gen. Stat. § 52-321 (2026)

Liability of income of trust fund to creditors. Expenses of trustee

✓ current as of May 2026

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Except as provided in sections 52-321a and 52-352b:

(a) If property has been given to trustees to pay over the income to any person, without provision for accumulation or express authorization to the trustees to withhold the income, and the income has not been expressly given for the support of the beneficiary or his family, the income shall be liable in equity to the claims of all creditors of the beneficiary.

(b) Any creditor of the beneficiary who has secured a judgment against the beneficiary may bring an action against him and serve the trustees with garnishee process, and the court to which the action is returnable may direct the trustees to pay over the net income derived from the trust estate to the judgment creditor, as the income may accrue, until the creditor's debt is satisfied.

(c) The court having jurisdiction over the fund may make such an order for payment pursuant to subsection (b) when the beneficiary is a nonresident of this state, as well as when the beneficiary is a resident, but in the case of a nonresident beneficiary notice shall be given to the nonresident of the action against him as provided in section 52-87. The nonresidence of the beneficiary shall not deprive the court of authority to make such an order.

(d) If any such trust has been expressly provided to be for the support of the beneficiary or his family, a court of equity having jurisdiction may make such order regarding the surplus, if any, not required for the support of the beneficiary or his family, as justice and equity may require.

(e) The defendant trustee in any such action shall be entitled to charge in the administration account of the trust such expenses and disbursements as the court to which the action is brought determines to be reasonable and proper.

(1949 Rev., S. 8034; 1953, S. 3195d; P.A. 82-160, S. 223; P.A. 91-239, S. 1, 4.)

History: P.A. 82-160 rephrased the section and inserted Subsec. indicators; P.A. 91-239 added “Except as provided in sections 52-321a and 52-352b”.

Cited. 72 C. 45; 96 C. 70; 147 C. 561. Does not apply to trust where trustees are to hold and expend income. 80 C. 237. Statute alone does not give jurisdiction of nonresident. 90 C. 299; 127 C. 112. Only method to create spendthrift trust; requisites. 95 C. 216; 107 C. 13; 108 C. 425. If any one of conditions is present, income is exempt from attachment; trust held a spendthrift trust. 107 C. 13; 108 C. 425. Spendthrift trust; income not assignable or attachable. 119 C. 141; Id., 508. No title to income passes to beneficiary unless and until appropriated to him by trustee. Id., 512. Trustee in determining whether to make expenditures under discretionary trust for support is entitled to take into consideration other means of support available to beneficiary. 119 C. 138; 133 C. 39. Statute does not protect trust created by settlor from his own property for his own benefit. 129 C. 222. Trustee's discretion subject to control of court only to extent abused. 133 C. 37. Fact that trust was not explicitly a spendthrift trust held not to mean that protection of beneficiary was not a purpose of the trust. 145 C. 634. Agreement of children of settlor of an irrevocable inter vivos trust, which was to be set up at settlor's death as spendthrift trusts for their benefit, to assign incomes therefrom to pay father's debts after his decease was unenforceable by executrix of father's estate; income of spendthrift trusts cannot be assigned by beneficiaries; spendthrift trusts to benefit children of settlor after his decease not changed by letter of children to third party lender who never relied thereon in making loans to settlor; spendthrift character of trust prevailed once irrevocable inter vivos trust was set up. 157 C. 315. Although section clearly permits court to order payment by trustee of creditor's claim only after claim is reduced to judgment, it does not bar equitable relief short of actual payment during pendency of action. 173 C. 276. Cited. 209 C. 15.

Cited. 32 CA 152.

Statute contemplates existing trust. 7 CS 308. Statute does not contemplate trusts where settlor is beneficiary or where settlor is one beneficiary and payments to him are interwoven with payments to the others; here the entire provision for payment was held invalid. 10 CS 147. Cited. 37 CS 566.

Burden is on plaintiff to show spendthrift trust was intended. 4 Conn. Cir. Ct. 402.

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Notes of Decisions

Cited in 19 cases (1 in the last 5 years), 1960–2025 · leading case: Corcoran v. Dep't of Soc. Servs., 859 A.2d 533 (Conn. 2004).

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Corcoran v. Dep't of Soc. Servs., 859 A.2d 533 (Conn. 2004). · cites it 8× “See General Statutes § 52-321. 19 In other words, the beneficiary has a “legal right *700 .”

Zeoli v. Comm'r of Soc. Servs., 425 A.2d 553 (Conn. 1979). · cites it 4× “See, generally, annot., 92 A.L.R.2d 838 . Thus, the defendant maintains that the plain *89 tiffs, or someone else on their behalf, have the right to compel the brother, as trustee, to release the trust assets for their care and support and that any refusal to do so would…”

Spencer v. Spencer, 802 A.2d 215 (Conn. App. Ct. 2002). · cites it 4× “4 “[A] spendthrift trust is one that restricts both the beneficiary’s ability to alienate his interest in the fund and his creditor’s ability to seize the property in satisfaction of his debts; in contrast to other types of protective trusts, a spendthrift trust in the technical…”

Cooley v. Cooley, 628 A.2d 608 (Conn. App. Ct. 1993). · cites it 4× “See General Statutes § 52-321. 1 The plaintiffs claim relates to the Paula Trust.”

O'Neil v. Fleet Nat'l Bank (In Re Britton), 300 B.R. 155 (Bankr. D. Conn. 2003). · cites it 7× “Spendthrift trusts are further defined by state statutory law, Conn. Gen.Stat. § 52-321(a), 7 which exempts from claims of creditors [income from] trusts in which the trustee has a right to accumulate or withhold income from the beneficiary.”

Matter of Tisdale, 112 B.R. 61 (Bankr. D. Conn. 1990). · cites it 5× “Such trusts are further controlled by Conn. Gen.Stat. § 52-321. § 52-321. Liability of income of trust fund to creditors.”

In Re Robbins, 211 B.R. 2 (Bankr. D. Conn. 1997). · cites it 5× “Spendthrift trusts are further defined by state statutory law, Conn. Gen.Stat. § 52-321(a), 2 which exempts from claims of creditors trusts in which the trustee has a right to accumulate or withhold income from the beneficiary or in which income has been “expressly given for the…”

Matter of Chick, 135 B.R. 201 (Bankr. D. Conn. 1991). · cites it 2× “§ 52-321 (which deals with spendthrift trusts) to make a "Keogh plan or a retirement plan established by a corporation which is qualified under Section 401, 403, 404 or 409 of the Internal Revenue Code of 1986” enforceable as a spendthrift trust.”

Gimbel v. Gimbel, 163 A.2d 451 (Conn. 1960). · cites it 2× “See General Statutes § 52-321. The writ cited the trustees and The National Bank and Trust Company of Fairfield County to appear and disclose on oath whether they were indebted to the principal defendant, Frederic.”

United States v. Cohn, 855 F. Supp. 572 (D. Conn. 1994). · cites it 2× “2d 553 (1979); Conn.Gen.Stat. § 52-321. As such, Cohn had but an expectancy under state law.”

Chandler v. Hale, 377 A.2d 318 (Conn. 1977). · cites it 3× “37814 (District of Connecticut, June 14, 1974) was bound to follow the law laid down by state courts, and by the trial court in this case, is that Foley laid down a rule that a spendthrift trust was created by direction to a trustee to pay to or use the income of a trust for the…”

Drummond v. Cowles, 278 F. Supp. 546 (D. Conn. 1968). · cites it 3× “1958) § 52-321. The standard of measure encompassed in § 70(a) (5) of the Bankruptcy Act defines the general right of the trustee to property which the bankrupt might have transferred or which might have been reached by legal process by creditors.”

Show all 19 citing cases →

— Conn. Gen. Stat. § 52-321(a) — 2 cases

O'Neil v. Fleet Nat'l Bank (In Re Britton), 300 B.R. 155 (Bankr. D. Conn. 2003). “Spendthrift trusts are further defined by state statutory law, Conn. Gen.Stat. § 52-321(a), 7 which exempts from claims of creditors [income from] trusts in which the trustee has a right to accumulate or withhold income from the beneficiary.”

In Re Robbins, 211 B.R. 2 (Bankr. D. Conn. 1997). “Spendthrift trusts are further defined by state statutory law, Conn. Gen.Stat. § 52-321(a), 2 which exempts from claims of creditors trusts in which the trustee has a right to accumulate or withhold income from the beneficiary or in which income has been “expressly given for the…”

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