                                 CODE OF VIRGINIA

OVERDUE DISTRIBUTION (§ 64.2-748)

A. In this section &#8220;mandatory distribution&#8221; 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 does not include a distribution subject to the exercise of the
trustee&#8217;s discretion even if (i) the discretion is expressed in the form
of a standard of distribution or (ii) the terms of the trust authorizing a
distribution use 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.

HISTORY: 2005, c. 935, § 55-545.06; 2007, c. 216; 2012, c. 614.