736.0506 Overdue distribution. - Florida Statutes

736.0506 Overdue distribution.

   (1) As used in this section, the term “mandatory distribution” means a distribution of income or principal the trustee is required to make to a beneficiary under the terms of the trust, including a distribution on termination of the trust. The term does not include a distribution subject to the exercise of the trustee’s discretion, even if:

   (a) The discretion is expressed in the form of a standard of distribution; or

   (b) The terms of the trust authorizing a distribution couple language of discretion with language of direction.

   (2) 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, whether or not a trust contains a spendthrift provision.

History. s. 5, ch. 2006-217.