Mississippi Code 1972 (2023)
Title 91 - TRUSTS AND ESTATES (§§ 91-1-NEW — 91-31-25)
Chapter 8 - MISSISSIPPI UNIFORM TRUST CODE (§§ 91-8-101 — 91-8-1206)
Article 5 - CREDITOR'S CLAIMS; SPENDTHRIFT AND DISCRETIONARY TRUSTS (§§ 91-8-501 — 91-8-508)
Section 91-8-503 - Discretionary interests; effect thereof

• (a) A discretionary interest is neither a property interest nor an enforceable right; it is a mere expectancy.

• (b) Relative to a discretionary interest, whether or not a trust contains a spendthrift provision:
  • (1) A creditor or assignee cannot force or otherwise reach a distribution with regard to a discretionary interest;
  • (2) A creditor or assignee cannot require a trustee, cotrustee or other fiduciary to exercise the trustee's, cotrustee's or other fiduciary's discretion to make a distribution with regard to a discretionary interest;
  • (3) Whether or not a beneficiary has any outstanding creditors or assignees, a trustee, cotrustee or other fiduciary of a discretionary interest may directly pay any expense on behalf of the beneficiary and may exhaust the income and principal of the trust for the benefit of the beneficiary;
  • (4) A trustee, cotrustee or other fiduciary is not liable to any creditor or assignee for paying the expenses of a beneficiary of a discretionary interest;
  • (5)
    • (A) Whether or not a beneficiary holding a discretionary interest is also a trustee, cotrustee or other fiduciary, subsections (b)(1) through (4) remain applicable if:
      • (i) The beneficiary-fiduciary does not have the discretion to make or participate in making distributions to such beneficiary-fiduciary;
      • (ii) The beneficiary-fiduciary's discretion to make or participate in making distributions to such beneficiary-fiduciary is limited by an ascertainable standard; or
      • (iii) The beneficiary-fiduciary's discretion to make or participate in making distributions to such beneficiary-fiduciary is exercisable only with the consent of a cotrustee or another person holding an adverse interest.
    • (B) A creditor or assignee may compel or otherwise reach a distribution only to the extent the creditor or assignee may compel or otherwise reach a distribution if the beneficiary was not acting as a trustee, cotrustee or other fiduciary.

Added by Laws, 2020, ch. 406, SB 2851,§ 61, eff. 7/1/2020.