AK HB146

Amends AS 34.40.110(b) to allow transfer restrictions on trust interests that prevent creditors from satisfying claims against a beneficiary's trust interest, unless the creditor is a settlor's creditor who proves by clear and convincing evidence that the transfer was made with intent to defraud.

Clarifies that a settlor's expressed intention to protect trust assets from a beneficiary's potential future creditors is not evidence of intent to defraud.

Establishes exceptions to transfer restrictions for certain types of distributions including charitable remainder trusts, qualified personal residence trusts, grantor retained annuity trusts, discretionary trustee distributions, and distributions to pay income taxes on trust income.

Adds exception allowing transfer restrictions to be enforced even when the settlor retains authority to appoint or remove trustees, trust protectors, or advisors (provided replacements are not related or subordinate parties).

Includes exception to transfer restrictions when the settlor is in default by 30 or more days on a child support judgment or order payment at the time of the transfer.