(a) In this section, “mandatory distribution” shall mean 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. “Mandatory distribution” shall not include a distribution 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 of discretion with language of direction.
(b) 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.
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