Scheffel v. Krueger

Summary

The New Hampshire Supreme Court held that a statutory spendthrift provision protected trust assets from attachment by a tort creditor seeking to satisfy a judgment. The court concluded that RSA 564:23 created no exception for tort creditors or criminal conduct beyond the statutory exceptions for beneficiary-settlor trusts and fraudulent transfers. The court also upheld the denial of the request to terminate the trust because its support, maintenance, and education purposes could still be fulfilled.

Holdings

1. RSA 564:23 makes the spendthrift provision enforceable against the plaintiff's tort judgment claim because the statute contains no exception for tort creditors or claims arising from criminal conduct.
2. The trust qualifies for protection under RSA 564:23 notwithstanding provisions allowing the beneficiary to determine payment frequency, receive principal after age fifty, and dispose of trust assets by will.
3. Termination was properly denied because the record supported the trial court's finding that the trust's purpose could still be fulfilled during and after the beneficiary's incarceration.

Questions Presented

1. Whether RSA 564:23 shields a beneficiary's trust interest from a tort creditor, including a creditor whose claim arises from criminal conduct.
2. Whether the beneficiary's rights to determine payment frequency, receive principal after age fifty, and dispose of trust assets by will prevent the trust from qualifying for statutory spendthrift protection.
3. Whether the trust should be terminated because incarceration allegedly prevents fulfillment of its support, maintenance, and education purposes.

Disposition

affirmed