Bank of Dallas v. Republic National Bank of Dallas
Texas Court of Civil Appeals
540 S.W.2d 499 (1976)
Relevant factsFree
Patricia Fewell created an irrevocable spendthrift trust for herself and her children, receiving discretionary income distributions during her life and holding a power to appoint the remaining trust corpus by will at her death. A creditor sought to garnish both the trust's principal and the income distributed to Fewell; the trial court allowed garnishment of the income but not the principal, and the creditor appealed the ruling on the principal.
IssueFree
Whether a settlor's creditors may garnish the principal, as well as the income, of a self-settled spendthrift trust when the settlor retains a life interest and a general power of appointment over the remainder.