456.5-506. Mandatory distribution defined--overdue distribution.
Mandatory distribution defined--overdue distribution.
456.5-506. 1. As used in this section, "mandatory distribution"means a distribution of income or principal which the trustee is requiredto make to a beneficiary under the terms of the trust, including adistribution upon termination of the trust. The term does not include adistribution subject to the exercise of the trustee's discretion even if(1) the discretion is expressed in the form of a standard of distribution,or (2) the terms of the trust authorizing a distribution couple language ofdiscretion with language of direction.
2. Whether or not a trust contains a spendthrift provision, acreditor or assignee of a beneficiary may reach a mandatory distribution ofincome or principal, including a distribution upon termination of thetrust, if the trustee has not made the distribution to the beneficiarywithin a reasonable time after the required distribution date.
(L. 2004 H.B. 1511, A.L. 2006 S.B. 892)