Excess income from trust property subject to creditors' claims · as in force on May 31, 2026
§ 7-3.4 Excess income from trust property subject to creditors' claims
Where a trust is created to receive the income from property and no valid direction for accumulation is given, the income in excess of the sum necessary for the education and support of the beneficiary is subject to the claims of his creditors in the same manner as other property which cannot be reached by execution.
When a trust directs payment of income without a valid accumulation direction, income beyond what is needed for the beneficiary’s education and support is subject to creditor claims like other property not reachable by execution. ★
Marked in the text: penalties, time limits, sums of money. Editorial emphasis added by this edition; it does not appear in the statute as enacted.
This provision appears in Volume 1 — The Surrogate's Court in Plain English; Volume 3 — The Surrogate's Court: Court Rules & the EPTL; Volume 5 — Your Career: Surrogate's Court in Plain English.