(506) Overdue distribution
N.D. Cent. Code § 59-13-06
in effect59-13-06. (506) Overdue distribution
1. 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:
a. The discretion is expressed in the form of a standard of distribution; or
b. The terms of the trust authorizing a distribution couple language of discretion with
language of direction.
2. 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.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t59c13.pdf#nameddest=59-13-06Fetched: 10/16/2026