55-1-24. Definitions applicable to §§ 55-1-24 to 55-1-45.

Terms used in §§ 55-1-24 to 55-1-45, inclusive, mean:

(1)    "Beneficial interest," is limited to mean a distribution interest or a remainder interest. A beneficial interest specifically excludes a power of appointment or a power reserved by the settlor;

(2)    "Distribution beneficiary," a beneficiary who is an eligible distributee or permissible distributee of trust income or principal;

(3)    "Distribution interest," a distribution interest held by a distribution beneficiary. A distribution interest may be a current distribution interest or a future distribution interest. A distribution interest may be classified as a mandatory interest, a support interest, or a discretionary interest;

(4)    "Power of appointment," as defined in § 55-1-12;

(5)    "Reach," with respect to a distribution interest or power, to subject the distribution interest or power to a judgment, decree, garnishment, attachment, execution, levy, creditor's bill or other legal, equitable, or administrative process, relief, or control of any court, tribunal, agency, or other entity as provided by law;

(6)    "Remainder interest," an interest where a trust beneficiary receives the property outright at some time during the future;

(7)    "Reserved power," a power held by the settlor.

Source: SL 2007, ch 280, § 1; SL 2008, ch 257, § 2; SL 2009, ch 252, § 2; SL 2011, ch 212, § 30; SL 2015, ch 240, § 10; SL 2016, ch 231, § 10.

55-1-24.1. Improper motive.

For purposes of §§ 55-1-24 to 55-1-45, inclusive, improper motive is demonstrated by action such as the following:

(1)    A trustee refusing to make or limiting distributions to beneficiaries other than the trustee due to the trustee's self interest when the trustee also holds a beneficial interest subject to a discretionary interest; or

(2)    A trustee making a distribution in excess of an ascertainable standard to himself or herself as beneficiary when the trustee is restricted by an ascertainable standard in the trust.

Source: SL 2008, ch 257, § 3; SL 2011, ch 212, § 31.

55-1-24.2. Withdrawal power.

A withdrawal power allows a person a right to withdraw all or some part of the trust property, whether from income or principal. The holder of a withdrawal power is not deemed to be the settlor of the trust by failing to exercise a withdrawal power or letting a withdrawal power lapse.

Source: SL 2011, ch 212, § 32; SL 2016, ch 231, § 11.