{"data":{"id":"us-nc/n.c.-gen.-stat.-36c-5-506","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 36C-5-506","heading":"Overdue distribution.","body":"(a)\tIn 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. The term excludes a distribution subject to the exercise of the trustee's discretion, regardless of whether the terms of the trust (i) include a support or other standard to guide the trustee in making distribution decisions; or (ii) provide that the trustee \"may\" or \"shall\" make discretionary distributions, including distributions under a support or other standard.\n(b)\tWhether 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. (2005-192, s. 2.)","path":["Chapter 36C. North Carolina Uniform Trust Code.","Article 5. Creditors' Claims; Spendthrift and Discretionary Trusts."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_36C/GS_36C-5-506.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:01:17Z","sha256":"cc42dc1063409bd6aeb8ab98ad7f2a453c5e556b93b825b0c237063c4ec55469","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-36c-5-505","next":"us-nc/n.c.-gen.-stat.-36c-5-507"},"notice":"GroundRules: Original legal text. Not legal advice."}