4-10-504. Discretionary trusts; effect of standard.
(a) Repealed By Laws 2007, Ch. 155, § 5.
(b) When the terms of the trust provide that the trustee may only make discretionary distributions to a beneficiary, whether or not the trust contains a spendthrift provision, a creditor or assignee of the trust beneficiary, including a creditor bringing a claim for forced heirship or legitime, may not compel the trustee to distribute any income or principal, or both, from the trust or reach or attach the interest of the beneficiary unless and until a trust distribution is received by the beneficiary, even if:
(i) The trustee has discretion to make distributions for purposes stated in a standard of distribution;
(ii) The trustee has abused the discretion; or
(iii) The trustee makes distributions directly to third parties for the benefit of the beneficiary in accordance with the terms of the trust.
(c) Repealed By Laws 2007, Ch. 155, § 5.
(d) This section shall not limit the right of a beneficiary to maintain a judicial proceeding against a trustee for an abuse of discretion. However, a creditor or assignee of a beneficiary may not maintain, or compel the beneficiary to maintain, a proceeding on behalf of the beneficiary or the creditor or assignee.
(e) Repealed By Laws 2007, Ch. 155, § 5.
(f) A discretionary trust created for the benefit of a disabled person under W.S. 42-2-403(f)(i) and (ii) and 42 U.S.C. 1396p(d)(4)(A) and (C) shall have the protection of discretionary trusts provided under this section and such protection shall apply regardless of the date the trust was created.
(g) Terms of a trust providing a trustee may make discretionary distributions to a beneficiary, whether or not the discretionary distributions are pursuant to a standard of distribution, shall not create any property interest in the beneficiary or any enforceable right to a distribution for the beneficiary.
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