DET Grant Practice Test

Discretionary trusts give the beneficiary only a potential entitlement, not a guaranteed right to trust assets. The trustee controls whether to distribute and, if so, how much. A judgment creditor can reach property only if there is a present, enforceable right to payment. Because the beneficiary’s right in a discretionary trust is not presently enforceable and can be withheld at the trustee’s discretion, the creditor cannot compel distribution or seize the beneficiary’s interest to satisfy the judgment. Therefore, under the majority rule, you cannot proceed against X’s interest. The fact that distributions occur would depend on the trustee’s discretion, not a guaranteed obligation. (Revocability can change creditor rights in some contexts, but for a discretionary trust, the standard outcome is that the interest isn’t attachable.)