Current through 2024 First Special Session
Section 44D-5-506 - Overdue distribution(a) In this section, "mandatory distribution" means a distribution of income or principal which the trustee is required to make to a beneficiary under the terms of the trust instrument, including a distribution upon termination of the trust. The term does not include a distribution subject to the exercise of the trustee's discretion even if: (1) The discretion is expressed in the form of a standard of distribution; or(2) The terms of the trust instrument authorizing a distribution couple language of discretion with language of direction.(b) Whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary within a reasonable time after the designated distribution date.Added by 2011 Acts, ch. 66 (HB 2551), eff. 6/10/2011.