Brief Fact Summary. The Plaintiffs, Broadway, had a debt due from defendant Adams. A trust fund created for Adams’s brother Charles Adams by will called for $75,000 to be held in trust, income to be paid semiannually to Charles, and Adams wanted to attach the debt to this trust.
Synopsis of Rule of Law. The public policy rule that subjects a debtor’s property to the payment of his debts does not subject the property of a donor to the debts of his beneficiary, and does not give the creditor a right to complain that it is out of reach.
Issue. Whether the founder of a trust can secure the income of a trust to his heirs, by providing that it shall not be alienable by him or be subject to be taken by creditors.
Held. Bill dismissed. Under the provisions of a valid will the income of a trust fund created for the benefit of another cannot be reached by attachment, either at law or in equity, before it is paid to the beneficiary.
Discussion. Under the provisions of the will the income of the trust fund created for the benefit of the defendant Adams cannot be reached by attachment, either at law or in equity, before it is paid to him.