John M. Carmack, as Trustee v. Rick H. Reynolds, Defendant; Todd A…

Summary

The court held that California's Probate Code does not impose an absolute 25 percent limit on a general creditor's access to a spendthrift trust that distributes entirely from principal. A creditor may reach the full amount of principal currently due and payable, subject to support and education protections, and may separately reach up to 25 percent of anticipated distributions. The court also concluded that the broader creditor-access provision applies to both income and principal but must be harmonized with the statutory 25 percent limitation for anticipated payments.