Arkansas Code of 1987 (2024)
Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28)
Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803)
Chapter 73 - ARKANSAS TRUST CODE (§§ 28-73-101 — 28-73-1106)
Subchapter 5 - CREDITOR'S CLAIMS - SPENDTHRIFT AND DISCRETIONARY TRUSTS (§§ 28-73-501 — 28-73-507)
Section 28-73-504 - 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. Under § 28-73-814(a), a trustee must always exercise a discretionary power in good faith and with regard to the purposes of the trust and the interests of the beneficiaries.

• (c) A creditor may not reach the interest of a beneficiary who is also a trustee or cotrustee, or otherwise compel a distribution, if the trustee's discretion to make distributions for the trustee's own benefit is limited by an ascertainable standard.

Acts 2005, No. 1031, § 1.