Pachter, Gold & Schaffer v. Yantis

MEMORANDUM OPINION

MORRIS SHEPPARD ARNOLD, District Judge.

In 1956, Eva Vick Yantis created a so-called “spendthrift trust” for her children. The trust provided that no principal or income could be attached by creditors prior to its receipt by beneficiaries. (Def. Exh. 1, at 6). See Bowlin v. Citizens Bank & Trust Co., 131 Ark. 97, 101-02, 198 S.W. 288, 289 (1917) (holding that spendthrift trusts are valid under Arkansas law). The first codicil to Mrs. Yantis’s will created a separate spendthrift trust (“the Trust”), for her son John (“defendant”). This trust appointed defendant and Merchants…