Sec. 506. Overdue distribution.
141 words·~1 min read·
/il/chapter-760/act-3/506A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Sec. 506. Overdue distribution.
(a)In this Section, "mandatory distribution" means a distribution of income or principal that the trustee is required to make to a beneficiary under 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 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.