{"data":{"id":"us-dc/d.c.-code-29-1206.06","jurisdiction":"us-dc","citation":"D.C. Code § 29-1206.06","heading":"Transfer of beneficial interest.","body":"(a)\nFor the purposes of this section, “covered creditor” means a judgment creditor of a beneficial owner or a person to which a beneficial interest has been transferred by operation of law.\n\n(b)\nExcept as otherwise provided in the governing instrument, a beneficial interest in a statutory trust is freely transferable.\n\n(c)\nThe governing instrument may not limit the transferability of a beneficial interest if the same person is the sole trustee and sole beneficial owner.\n\n(d)\nIf a beneficial interest is not freely transferable by a beneficial owner such that a transferee may become a beneficial owner without further requirement except notice to the statutory trust, the following rules apply:\n(1)\nOn petition by a covered creditor, the Superior Court may authorize the petitioner to reach the beneficial owner’s interest by attachment of present or future distributions to or for the benefit of the beneficial owner or by other means. The court may limit the award to relief that is appropriate under the circumstances.\n(2)\nOn petition by a covered creditor, to the extent a trustee has not complied with a standard of distribution provided in the governing instrument or has abused the trustee’s discretion to make a distribution, the Superior Court:\n(A)\nMay order a distribution to the benefit of the petitioner; and\n(B)\nIf a distribution is ordered, shall direct the trustee to pay to the petitioner an equitable amount but not more than the amount the trustee would have been required to distribute to or for the benefit of the beneficial owner if the trustee had complied with the standard or had not abused the discretion.","path":["Title 29. Business Organizations. [Enacted title]","Chapter 12. Statutory Trusts.","Subchapter VI. Beneficial Owners."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/29-1206.06","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"a373e86c7773fdeb247ae1b7a5cee09e3a7ff85d989f7f4c2d21c8823ec6bc3d","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-29-1206.05","next":"us-dc/d.c.-code-29-1206.07"},"notice":"GroundRules: Original legal text. Not legal advice."}