Section 554D-506 - Overdue distribution(a) Regardless of whether 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.(b) As used 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: (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.Added by L 2021, c 32,§ 2, eff. 1/1/2022.