(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.
Structure Florida Statutes
Title XLII - Estates and Trusts
Chapter 736 - Florida Trust Code
Part V - Creditors’ Claims; Spendthrift and Discretionary Trusts (Ss. 736.0501-736.0507)
736.0501 - Rights of beneficiary’s creditor or assignee.
736.0502 - Spendthrift provision.
736.0503 - Exceptions to spendthrift provision.
736.0504 - Discretionary trusts; effect of standard.
736.0505 - Creditors’ claims against settlor.
736.05053 - Trustee’s duty to pay expenses and obligations of settlor’s estate.