Kenneth Vercammen & Associates, P.C.
2053 Woodbridge Ave.
Edison, NJ 08817
(732) 572-0500
www.njlaws.com

Thursday, April 4, 2019

3B:31-38. Discretionary Trusts; Effect of Standard.

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. 

No comments: