The Florida Senate

¹736.0506  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.

¹Note.--Effective July 1, 2007.