§ 59-13-06 — (506) Overdue distribution

North Dakota § 59-13-06

• Jurisdiction: North Dakota
• Title 59: Trusts, Uses, and Powers
• Ch. 59-13: Creditor's Claims - Spendthrift and Discretionary Trusts

Text

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:
a. The discretion is expressed in the form of a standard of distribution; or
b. 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.