{"data":{"id":"us-vt/14a-v.s.a.-506","jurisdiction":"us-vt","citation":"14A V.S.A. § 506","heading":"Overdue distribution","body":"(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:\n(1) the discretion is expressed in the form of a standard of distribution; or\n(2) the terms of the trust authorizing a distribution couple language of discretion with language of direction.\n(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.","path":["Title 14A: Trusts","Chapter 005: Creditor's Claims; Spendthrift and Discretionary Trusts"],"source_url":"https://legislature.vermont.gov/statutes/section/14A/005/00506","current_through":"2025 session","vintage":"","retrieved_at":"2026-09-05T17:16:59Z","sha256":"0c1dffe072f207a5c66afb2ae7dce9d2d1af5e6b93d5933730938b5e4ecdec5b","source_id":"us-vt","stale":false,"prev":"us-vt/14a-v.s.a.-505","next":"us-vt/14a-v.s.a.-507"},"notice":"GroundRules: Original legal text. Not legal advice."}