75-7-504. Discretionary trusts -- Effect of standard.
(1) In this section, "child" includes any person for whom an order or judgment for child
support has been entered in this or another state.
(2) Except as otherwise provided in Subsection (3), whether or not a trust contains a
spendthrift provision, a creditor of a beneficiary may not compel a distribution that is subject to
the 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 abused
a discretion:
(a) a distribution may be ordered by the court to satisfy a judgment or court order against
the 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 such
amount as is equitable under the circumstances but not more than the amount the trustee would
have been required to distribute to or for the benefit of the beneficiary had the trustee complied
with the standard or not abused the discretion.
(4) This section does not limit the right of a beneficiary to maintain a judicial proceeding
against a trustee for an abuse of discretion or failure to comply with a standard for distribution.
Enacted by Chapter 89, 2004 General Session
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Last revised: Wednesday, October 08, 2008