Current through Acts 2023-2024, ch. 272
Section 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.Added by Acts 2013SP1 ch, 92,s 100, eff. 12/15/2013.