SENATE COMMUNITY AND URBAN AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 4217

STATE OF NEW JERSEY

DATED:  JUNE 5, 2025

      The Senate Community and Urban Affairs Committee reports favorably Senate Bill No. 4217.

      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.