New Jersey Statutes
§ 3B:31-38 — Discretionary trusts; effect of standard.
New Jersey·Title 3B ADMINISTRATION OF ESTATES--DECEDENTS AND OTHERS
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.
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Nearby Sections
15
§ 3B:31-11
Nonjudicial settlement agreements.§ 3B:31-12
Rules of construction.§ 3B:31-13
Representation: basic effect.§ 3B:31-17
Appointment of representative.§ 3B:31-18
Methods of creating trust.§ 3B:31-19
Requirements for creation.§ 3B:31-2
Scope.§ 3B:31-21
Trust purposes.§ 3B:31-22
Charitable purposes, enforcement.