§ 36C-5-506. Overdue distribution.
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§ 36C-5-506. 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 terms of the trust, including a distribution upon termination of the trust. The term excludes a distribution subject to the exercise of the trustee's discretion, regardless of whether the terms of the trust
(i)include a support or other standard to guide the trustee in making distribution decisions; or
(ii)provide that the trustee "may" or "shall" make discretionary distributions, including distributions under a support or other standard.
(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. (2005-192, s. 2.)