Overdue distribution.

Checkout our iOS App for a better way to browser and research.

701.0506 Overdue distribution.

(1) 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. “Mandatory distribution" does not include a distribution subject to the exercise of the trustee's discretion even if any of the following applies:

(a) The discretion is expressed in the form of a standard of distribution.

(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.

History: 2013 a. 92.


Download our app to see the most-to-date content.