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

§ 36C‑5‑506. Overdue distribution.

(a)        In this section,"mandatory distribution" means a distribution of income or principalthat the trustee is required to make to a beneficiary under the terms of thetrust, including a distribution upon termination of the trust. The termexcludes a distribution subject to the exercise of the trustee's discretion,regardless of whether the terms of the trust (i) include a support or otherstandard to guide the trustee in making distribution decisions; or (ii) providethat the trustee "may" or "shall" make discretionarydistributions, including distributions under a support or other standard.

(b)        Whether or not atrust contains a spendthrift provision, a creditor or assignee of a beneficiarymay reach a mandatory distribution of income or principal, including adistribution upon termination of the trust, if the trustee has not made thedistribution to the beneficiary within a reasonable time after the designateddistribution date. (2005‑192,s. 2.)