New Jersey Statutes 3B:31-40. Overdue distribution
Terms Used In New Jersey Statutes 3B:31-40
- 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.
a. For the purposes of this section, “mandatory distribution” means a distribution of income or principal that the trustee is required to make to a beneficiary under the terms of the trust, including a distribution upon termination of the trust. The term excludes a distribution subject to the exercise of the trustee’s discretion, regardless of whether the terms of the trust (1) include a support or other standard to guide the trustee in making distribution decisions, or
(2) provide that the trustee “may” or “shall” make discretionary distributions, including distributions pursuant to a support or other standard.
b. Except as otherwise provided in section 1 of P.L.1996, c.41 (C. 3B:11-4.1), whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary within a reasonable time after the mandated distribution date.
L.2015, c.276, s.1.