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Bill > S4217
NJ S4217
NJ S4217Permits portion of child support payments to be held in trust for child to access upon certain circumstances.
summary
Introduced
03/03/2025
03/03/2025
In Committee
06/05/2025
06/05/2025
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill permits a portion of a child support payment to be placed in irrevocable trust. Under the bill, and upon agreement of the parties to an action before the court which results in the establishment of a child support payment, the court may direct up to 10 percent of every child support payment to be placed in an irrevocable trust. The trust assets would be distributable to a beneficiary upon the beneficiary turning 18 years of age, or the age at which the trust establishes. If the parties agree to the trust, every child who is the basis for a child support payment is required to be established as a beneficiary of the trust. Finally, the bill provides the court the ability to: (1) amend the terms of the trust as it relates to the portion of child support payment to be placed in the trust from time to time as circumstances may require based on the factors considered in N.J.S.A.2A:34-23; and (2) appoint a special fiduciary to take possession of the trust property and administer the trust if the court finds that the trustee is not acting in good faith or in accordance with the purposes of the trust.
AI Summary
This bill allows parents involved in a divorce or civil union dissolution to place up to 10 percent of their child support payments into an irrevocable trust, which the child can access upon reaching a specified age (or 18 if no other age is set). The trust must be created with the agreement of both parties and in accordance with New Jersey's Uniform Trust Code. Every child for whom child support is paid must be established as a beneficiary of the trust, and the court will have the power to appoint a trustee to manage the trust. The court can also modify the trust's terms over time based on changing circumstances and can appoint a special fiduciary if the original trustee is not acting in good faith. The trustee must administer the trust with complete loyalty to the beneficiaries and in their best interests, following all provisions of the state's trust laws. Importantly, the bill stipulates that the child support payment amount cannot be increased solely because of the creation of this trust, ensuring that the trust does not create additional financial burden on the paying parent.
Committee Categories
Budget and Finance, Housing and Urban Affairs
Sponsors (1)
Last Action
Referred to Senate Budget and Appropriations Committee (on 06/05/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S4217 |
| Analysis - Statement SCU 6/5/25 | https://pub.njleg.gov/Bills/2024/S4500/4217_S1.PDF |
| BillText | https://pub.njleg.gov/Bills/2024/S4500/4217_I1.HTM |
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