Scheffel v. Krueger

782 A.2d 410 (2001)

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Nature of the Case

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Facts

P sued D alleging that D has sexually assaulted P's minor child. The court entered a default judgment against the defendant and ordered him to pay $551,286.25 in damages. P sought an attachment of D's beneficial interest in the Kyle Krueger Irrevocable Trust (trust). D's grandmother established the trust in 1985 for the D's benefit. All the net income from the trust is to be paid at least quarterly and the trustee is authorized to pay any of the principal to D if in the trustee's sole discretion, the funds are necessary for the maintenance, support and education of D. D may not invade the principal until he reaches the age of fifty, which will not occur until April 6, 2016. D is prohibited from making any voluntary or involuntary transfers of his interest in the trust. Article VII of the trust instrument specifically provides: No principal or income payable or to become payable under any of the trusts created by this instrument shall be subject to anticipation or assignment by any beneficiary thereof, or to the interference or control of any creditors of such beneficiary or to be taken or reached by any legal or equitable process in satisfaction of any debt or liability of such beneficiary prior to its receipt by the beneficiary. D claims that this spendthrift provision bars P's claim against the trust. The trial court agreed and dismissed the trustee process action. P appealed.