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.
History: En. Sec. 71, Ch. 264, L. 2013.