{"data":{"id":"us-ak/as-34.40.113","jurisdiction":"us-ak","citation":"AS 34.40.113","heading":"Discretionary interests in irrevocable trusts.","body":"(a) This section applies to a creditor's claim with respect to a discretionary interest in an irrevocable trust unless the trust instrument provides otherwise.\n(b) A discretionary interest in an irrevocable trust is not a property interest or an enforceable right. It is an expectancy that a creditor of a beneficiary may not attach or otherwise reach.\n(c) A creditor of a beneficiary may not force a distribution with regard to a discretionary interest in an irrevocable trust. A creditor may not compel a trustee to exercise the trustee's discretion to make a distribution with regard to a discretionary interest in an irrevocable trust.\n(d) Even if a beneficiary has an outstanding creditor, in the case of a discretionary interest in an irrevocable trust, a trustee who has the authority to pay income or principal to a beneficiary may pay it to a third party if the payment is for the benefit of the beneficiary. A trustee is not liable to a creditor for paying income or principal on behalf of the beneficiary.\n(e) A creditor of a beneficiary may not maintain an action or a proceeding in court that interferes with the trustee's discretion to apply income or principal on behalf of the beneficiary.\n(f) A creditor of a beneficiary may not obtain an order of attachment or similar relief that would prevent a trustee from making a discretionary payment to a third party on behalf of the beneficiary.\n(g) This section does not prevent a creditor from obtaining relief from a fraudulent transfer under AS 34.40.110.\n(h) In this section, a beneficiary's entitlement to a distribution is within the discretion of a trustee, whether or not the trust instrument states the purposes for the distribution or uses “may,” “shall,” “sole and absolute,” “uncontrolled,” or similar words.\n(i) In this section, “discretionary interest” means a beneficiary's interest in an irrevocable trust if the beneficiary's entitlement to a distribution is within the discretion of the trustee.","path":["Title 34. Property.","Chapter 40. Fraudulent Transfers, Revocations, and Trusts."],"source_url":"https://www.akleg.gov/basis/statutes.asp#34.40.113","current_through":"Alaska Statutes 2025 (34th Legislature, 2025-2026)","vintage":"","retrieved_at":"2026-09-02T06:18:42Z","sha256":"784ab086bf408373b061188dd163368620de5bef52488c6a01fe8d96806185ea","source_id":"us-ak","stale":false,"prev":"us-ak/as-34.40.110","next":"us-ak/as-34.40.115"},"notice":"GroundRules: Original legal text. Not legal advice."}