700.7507 Overdue distribution; "mandatory distribution" defined.
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700.7507 Overdue distribution; "mandatory distribution" defined.
Sec. 7507.
(1)Whether or not a trust contains a spendthrift provision, a creditor or assignee of a trust 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 trust beneficiary within a reasonable time after the designated distribution date.
(2)As used in this section, "mandatory distribution" means a distribution of income or principal that the trustee is required to make to a trust beneficiary under the terms of the trust, including a distribution upon termination of the trust. Mandatory distribution does not include a distribution subject to the exercise of the trustee's discretion even if either of the following applies:
(a)The direction is expressed in the form of a standard of distribution.
(b)The terms of the trust authorizing a distribution use language of discretion and language of direction.
History: 1998, Act 386 , Eff. Apr. 1, 2000 ;-- Am. 2000, Act 54 , Eff. Apr. 1, 2000 ;-- Am. 2009, Act 46 , Eff. Apr. 1, 2010
Popular Name: EPIC