55-545.06 - Overdue distribution. - Virginia Statutes

§ 55-545.06. Overdue distribution.

A. In this section "mandatory distribution" means a distribution of incomeor principal that the trustee is required to make to a beneficiary under theterms of the trust, including a distribution upon termination of the trust.The term does not include a distribution subject to the exercise of thetrustee's discretion even if (i) the discretion is expressed in the form of astandard of distribution, or (ii) the terms of the trust authorizing adistribution use language of discretion with language of direction.

B. Whether or not a trust contains a spendthrift provision, a creditor orassignee of a beneficiary may reach a mandatory distribution of income orprincipal, including a distribution upon termination of the trust, if thetrustee has not made the distribution to the beneficiary within a reasonabletime after the designated distribution date.

(2005, c. 935; 2007, c. 216.)