Beneficiary’s estate may enforce a support trust

After holding that trust language stating that if by reason of accident or illness a beneficiary requires funds in excess of trust income, the trustee “shall” make payments of principal as it “may deem proper” for the benefit of the beneficiary creates a support trust, the court adopted the position of Restatement (Third) Trusts § 50 cmt. d(5), and held that the beneficiary’s estate may enforce the trust after the beneficiary’s death.

The case was remanded for an evidentiary hearing on whether the trustee had abused its discretion or had a duty to make payments of principal during the beneficiary’s life.  In re Hansen, 274 Neb. 199 (2007).