75-7-504 - Discretionary trusts -- Effect of standard.
75-7-504. Discretionary trusts -- Effect of standard.
(1) In this section, "child" includes any person for whom an order or judgment for childsupport has been entered in this or another state.
(2) Except as otherwise provided in Subsection (3), whether or not a trust contains aspendthrift provision, a creditor of a beneficiary may not compel a distribution that is subject tothe trustee's discretion, even if:
(a) the discretion is expressed in the form of a standard of distribution; or
(b) the trustee has abused the discretion.
(3) To the extent a trustee has not complied with a standard of distribution or has abuseda discretion:
(a) a distribution may be ordered by the court to satisfy a judgment or court order againstthe beneficiary for support or maintenance of the beneficiary's child, spouse, or former spouse;and
(b) the court shall direct the trustee to pay to the child, spouse, or former spouse suchamount as is equitable under the circumstances but not more than the amount the trustee wouldhave been required to distribute to or for the benefit of the beneficiary had the trustee compliedwith the standard or not abused the discretion.
(4) This section does not limit the right of a beneficiary to maintain a judicial proceedingagainst a trustee for an abuse of discretion or failure to comply with a standard for distribution.
Enacted by Chapter 89, 2004 General Session