§ 59-08-04 — Interpretation or enforcement - Reformation - Unenforceable trust provisions

provisions.
1. This chapter does not require the submission of a third-party special needs trust or a
self-settled special needs trust to a court for interpretation or enforcement.
2. A third-party special needs trust may not disqualify a recipient of publicly funded
benefits solely because a contingent beneficiary is named to receive the net balance
of the trust estate upon the death of a beneficiary with a disability, or upon other
termination of the trust.
3. The trustee or the grantor of any trust intended to be a third-party special needs trust
or a self-settled special needs trust may seek court reformation of the trust to
accomplish the purpose of a third-party special needs trust or a self-settled special
needs trust.
4. Except for self-settled special needs trusts and third-party special needs trusts, a
provision in a trust which provides for the suspension, termination, limitation, or
diversion of the principal, income, or beneficial interest of a beneficiary if the
beneficiary applies for, is determined eligible for, or receives publicly funded benefits is
unenforceable as against the public policy of this state, without regard to the
irrevocability of the trust or the purpose for which the trust was created.