Section 564-B:5-504 Discretionary Trusts; Effect of Standard. - New Hampshire Statutes

      (a) In this section, ""child'' includes any person for whom an order or judgment for child support has been entered in this or another state.
      (b) Except as otherwise provided in subsection (c), 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.
      (c) To the extent a trustee has not complied with a standard of distribution or has abused a discretion:
         (1) a distribution may be ordered by the court to satisfy a judgment or court order against the beneficiary for support of the beneficiary's child or for alimony for the beneficiary's spouse, or former spouse; and
         (2) the court shall direct the trustee to pay to the child, spouse, or former spouse such amount as is equitable under the circumstances but not more than the amount the trustee would have been required to distribute to or for the benefit of the beneficiary had the trustee complied with the standard or not abused the discretion and with respect to alimony, only for and to the extent that the judgment or court order expressly specifies the alimony amount attributable to the most basic food, shelter, and medical needs of the spouse or former spouse.
      (d) 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.
      (e) A creditor or assignee of a beneficiary may not compel a distribution to the beneficiary solely because the beneficiary is a trustee if the beneficiary-trustee does not have the discretion to make or participate in making distributions to himself or herself, if the beneficiary-trustee's discretion to make or participate in making distributions to himself or herself is limited by an ascertainable standard, or if the beneficiary-trustee's discretion to make or participate in making distributions to himself or herself is exercisable only with the consent of a cotrustee or another person holding an adverse interest. Under such circumstances, the creditor or assignee may compel a distribution only to the extent the creditor or assignee otherwise may compel a distribution were the beneficiary not acting as trustee or cotrustee.

Source. 2004, 130:1. 2005, 270:14. 2006, 320:55, 56, eff. Aug. 19, 2006.