New Jersey Statutes 3B:31-38. Discretionary trusts; effect of standard
Current as of: 2024 | Check for updates
|
Other versions
Terms Used In New Jersey Statutes 3B:31-38
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Trustee: A person or institution holding and administering property in trust.
3B:31-38. Discretionary Trusts; Effect of Standard.
a. Whether or not a trust contains a spendthrift provision, a creditor of a beneficiary may not compel a distribution that is subject to the trustee‘s discretion, even if:
(1) The discretion is expressed in the form of a standard of distribution; or
(2) The trustee has abused the discretion.
b. This section does not limit the right of a beneficiary to maintain a judicial proceeding against a trustee for an abuse of discretion or failure to comply with a standard for distribution.
c. With respect to the powers set forth in section 1 of P.L.1996, c.41 (C. 3B:11-4.1), the provisions of this section shall apply even though the beneficiary is the sole trustee or a co-trustee of the trust.
L.2015, c.276, s.1.