Creditors’ Rights and the Uniform Trust Code
Robert T. Danforth (Associate Professor of Law and Alumni Faculty Fellow, Washington and Lee University School of Law) has recently published his article entitled Article Five of the UTC and the Future of Creditors’ Rights in Trust, 27 Cardozo L. Rev. 2551 (2006).
Here is the conclusion of his article:
This Article is, ultimately, a defense of Article Five: though imperfect, Article Five does not do what the critics claim. It does not undermine spendthrift protections; in fact, in many respects, it actually strengthens them. Moreover, contrary to the critics’ claims, Article Five does not constitute a significant departure from the common law. Where it does so depart (or with respect to questions for which the common law fails to provide a clear rule), Article Five strikes an appropriate balance between the interests of settlors and their beneficiaries and the interests of creditors. At best, the critics’ claims about Article Five are misinformed or misguided; at worst, they are deceptive. Most importantly, the arguments of the critics should not be permitted to impede further adoptions of the UTC.