Current through Public Act 166 of the 2024 Legislative Session
Section 700.7507 - Overdue distribution; "mandatory distribution" defined(1) Whether or not a trust contains a spendthrift provision, a creditor or assignee of a trust 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 trust beneficiary within a reasonable time after the designated distribution date.(2) As used in this section, "mandatory distribution" means a distribution of income or principal that the trustee is required to make to a trust 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 either of the following applies: (a) The direction is expressed in the form of a standard of distribution.(b) The terms of the trust authorizing a distribution use language of discretion and language of direction.Amended by 2009, Act 46,s 86 , eff. 4/1/2010.1998, Act 386, Eff. 4/1/2000 ;--Am. 2000, Act 54, Eff. 4/1/2000.