Trust in restraint of alienation definition

What does Trust in restraint of alienation mean?

Any trust which creates an absolute equitable interest but attempts to negative the statutory devolution on intestacy or the power of testamentary disposition, or the right of committing waste, is, as any such attempt, void.

Where a trust confers in other respects an absolute estate or interest in property on a beneficiary of full age and sound mind, whether for life or altogether, a provision in restraint of the anticipation or alienation of either the capital or the income of the property, whether by bankruptcy or otherwise, or a provision that it is not to be liable to the claims of creditors, is void, as it would deprive the interest given of one of its legal incidents. It makes no difference that a discretion is given to the trustee as to the mode of applying the capital or income for the benefit of the beneficiary. However, a gift to a beneficiary until he becomes bankrupt or attempts to alienate his interest is good.

Trust in restraint of alienation is referenced 1 in Halsbury's Laws of England

Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.

  Case studies

"It gives us a really broad coverage of the law, as well as the specialist areas we have to deal with: contracting, procurement, employment law, governance. I've found some fairly obscure case law on LexisLibrary, very quickly."

Walsall Council

Access all documents on Trust in restraint of alienation