The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 14A V.S.A. § 506)
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§ 506. Overdue distribution
(a) In this section, “mandatory distribution” means a distribution of income or principal
which the trustee is required to make to a beneficiary under the terms of the trust,
including a distribution upon termination of the trust. The term does not include
a distribution subject to the exercise of the trustee’s discretion even if:
(1) the discretion is expressed in the form of a standard of distribution; or
(2) the terms of the trust authorizing a distribution couple language of discretion with
language of direction.
(b) 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. (Added 2009, No. 20, § 1.)