Montana § 72-38-506 Overdue Distribution

Montana Statutes

§ 72-38-506 — Overdue Distribution

Montana § 72-38-506

Title 72ESTATES, TRUSTS, AND FIDUCIARY RELATIONSHIPS

Ch. 38MONTANA UNIFORM TRUST CODE

Part 5Creditor's Claims -- Spendthrift and Discretionary Trusts

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Bluebook

Mont. Code Ann. § 72-38-506 (2026).

Text

72-38-506 . Overdue distribution.

(1)(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.

(b)The term does not include a distribution subject to the exercise of the trustee's discretion even if:

(i)the discretion is expressed in the form of a standard of distribution; or

(ii)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

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72-38-506 . Overdue distribution. (1) (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.
(b) The term does not include a distribution subject to the exercise of the trustee's discretion even if:
(i) the discretion is expressed in the form of a standard of distribution; or
(ii) 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.