North Carolina General Statutes § 36C-5-506 Overdue distribution

(a)        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. The term excludes a distribution subject to the exercise of the trustee's discretion, regardless of whether the terms of the trust (i) include a support or other standard to guide the trustee in making distribution decisions; or (ii) provide that the trustee "may" or "shall" make discretionary distributions, including distributions under a support or other standard.

(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. (2005-192, s. 2.)

Sections:  Previous  36C-4B-6  36C-4B-7  36C-5-501  36C-5-502  36C-5-503  36C-5-504  36C-5-505  36C-5-506  36C-5-507  36C-5-508  36C-6-601  36C-6-602  36C-6-602.1  36C-6-603  36C-6-604  Next

Last modified: March 23, 2014