Shannon v. Johnson

STEPHAN, Judge.

This is an appeal from a judgment of the Circuit Court of Madison County.1 The trial court determined that, under the provisions of a spendthrift trust, trust property could not be encumbered by one of the beneficiaries, even though she had reached the age specified in the trust at which she was to receive her half of the principal. The court also determined, however, that even though the beneficiary could not encumber the property, the beneficiary’s creditor could have first lien rights on the proceeds when the trust property was sold. We affirm the judgment on different…