§ 29-1206-06

06. Transfer of beneficial interest. (a) For the purposes of this section, 'covered creditor' means a judgment creditor of a beneficial owner or a person to which a beneficial interest has been transferred by operation of law. (b) Except as otherwise provided in the governing instrument, a beneficial interest in a statutory trust is freely transferable. (c) The governing instrument may not limit the transferability of a beneficial interest if the same person is the sole trustee and sole beneficial owner. (d) If a beneficial interest is not freely transferable by a beneficial owner such that a transferee may become a beneficial owner without further requirement except notice to the statutory trust, the following rules apply: (1) On petition by a covered creditor, the Superior Court may authorize the petitioner to reach the beneficial owner’s interest by attachment of present or future distributions to or for the benefit of the beneficial owner or by other means. The court may limit the award to relief that is appropriate under the circumstances. (2) On petition by a covered creditor, to the extent a trustee has not complied with a standard of distribution provided in the

limit the award to relief that is appropriate under the circumstances. (2) On petition by a covered creditor, to the extent a trustee has not complied with a standard of distribution provided in the governing instrument or has abused the trustee’s discretion to make a distribution, the Superior Court: (A) May order a distribution to the benefit of the petitioner; and (B) If a distribution is ordered, shall direct the trustee to pay to the petitioner an equitable amount but not more than the amount the trustee would have been required to distribute to or for the benefit of the beneficial owner if the trustee had complied with the standard or had not abused the discretion. (July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720; Mar. 5, 2013, D.C. Law 19-210, § 2(l)(7)(E), 59 DCR 13171.) Section References This section is referenced in § 29-1201.04. Effect of Amendments The 2013 amendment by D.C. Law 19-210 rewrote the section. Editor's Notes Uniform Law: This section is based on § 606 of the Uniform Statutory Trust Entity Act. Application of Law 19-210: Section 7 of D.C. Law 19-210 provided that the act shall apply as of January 1, 2012.