§ 15-5-506 — Overdue distribution - definition

(1) 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, 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 the discretion is
expressed in the form of a standard of distribution, or the terms of the trust
authorizing a distribution couple language of discretion with language of direction.

(2) 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.

Legislative History

Source: L. 2021: Entire part added, (SB 21-162), ch. 170, p. 943, � 1, effective September 7.