2011 New Mexico Statutes
Chapter 46A: Uniform Trust Code
Article 5: Creditor's Claims; Spendthrift and Discretionary Trusts, 46A-5-501 through 46A-5-507
Section 46A-5-506: Overdue distribution.
46A-5-506. Overdue distribution.
A. Whether or not a trust contains a spendthrift provision, 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.
B. As used in this section, "mandatory distribution" means a distribution of income or principal that the trustee is required to make to a beneficiary under the terms of the trust, including a distribution upon termination of the trust. "Mandatory distribution" does not include a distribution subject to the exercise of the trustee's discretion even if the discretion is expressed in the form of a standard of distribution or the terms of the trust authorizing distribution combine language of discretion with language of direction.
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