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HB 1513

Qualified self-settled spendthrift trusts; disbursements, powers of trustee.

2026 Regular Session Introduced by Jay Leftwich

HB 1513 expands trustee powers in self-settled spendthrift trusts, potentially increasing asset protection for trust creators while adjusting creditor claim procedures.

Acts of Assembly Chapter text (CHAP0476)
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Bill Summary · HB 1513

Legislative bill overview

HB 1513 modifies Virginia's laws governing qualified self-settled spendthrift trusts by adjusting trustee disbursement authority and powers. The bill appears to expand or clarify the circumstances under which trustees can distribute trust assets to the settlor (the person who created the trust) while maintaining creditor protections. This reflects evolving trust law that allows individuals to create trusts for their own benefit while sheltering assets from creditors under certain conditions.

Why is this important

Spendthrift trust provisions protect beneficiaries from creditors and their own financial mismanagement, but self-settled trusts—where the creator is also a beneficiary—operate in a complex legal gray area. Changes to trustee powers directly affect estate planning strategies, asset protection capabilities, and the enforceability of trust provisions against creditor claims. This impacts wealthy individuals, their families, and creditors seeking to collect debts.

Potential points of contention

  • Asset protection abuse concerns: Expanding trustee discretion in self-settled trusts could enable debtors to shield assets from legitimate creditors by creating trusts that benefit themselves
  • Creditor rights vs. settlor protection: Balancing the settlor's legitimate interest in asset protection against creditors' ability to recover lawful judgments
  • Alignment with federal law: Virginia's approach may need coordination with federal bankruptcy law and the Uniform Trust Code to avoid conflicts or unintended consequences

Compiled from official sources — confirm details with the bill’s official record.

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