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Debtor is Trustee/Beneficiary of Revocable Trust -
Thank you! I have a love/hate relationship with being wrong!
Sincerely,
*Michael Avanesian, Esq. *
Avanesian Law Firm
801 N. Brand Blvd., Suite #1130
Glendale, CA 91203
Tel: 818.276.2477 | Fax: 818.208.4550
*Confidentiality**: *This electronic transmission and its contents are
legally privileged and confidential information and intended solely for the
use of the addressee. If the reader of this message is not the intended
recipient, you are hereby notified that any dissemination, distribution,
copying or other use of this message and its contents is strictly
prohibited. If you have received this transmission in error, please reply
to us immediately and delete this message from your directory.
*IRS Circular 230 Disclosure:* To ensure compliance with requirements
imposed by the IRS, please be advised that any U.S. federal tax advice
contained in this communication (including any attachments) is not intended
or written to be used or relied upon, and cannot be used or relied upon,
for the purpose of (i) avoiding penalties under the Internal Revenue Code,
or (ii) promoting, marketing or recommending to another party any
transaction or matter addressed herein.
On Mon, Jun 20, 2016 at 9:24 AM, David Tilem DavidTilem@TilemLaw.com
[cdcbaa] wrote:
>
>
> Michael may have jumped the gun on this one. The trust is an inter-vivos
> trust, not a transfer as a result of death. Accordingly, the 180 day rule
> does not apply.
>
>
>
> *David A. Tilem*
>
> *Certified Bankruptcy Specialist Since 1997*
>
> Law Offices of David A. Tilem
>
> 206 N. Jackson St., #201
>
> Glendale, CA 91206
>
> Tel: 818-507-6000 * Fax: 818-507-6800
>
> www.TilemLaw.com
>
>
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> INFORMATION from Law Offices of David A. Tilem. This information is
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>
> *From:* cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com]
> *Sent:* Monday, June 20, 2016 9:04 AM
> *To:* CDCBAA List Serve
> *Subject:* Re: [cdcbaa] Debtor is Trustee/Beneficiary of Revocable Trust
> - filing chapter 7
>
>
>
>
>
> I have to assume your legal conclusions are true meaning the trust is
> revocable and the beneficiary/Debtor has no vested interest. That's the
> most important part btw. If it is not his property and he has no right to
> it, then the chapter 7 trustee, stepping into his shoes will not have a
> claim to it either. This does not meant the trustee won't try and your
> client won't have to litigate the matter.
>
>
>
> If mother dies, I have to assume the trust is setup to vest all the
> property in the beneficiary. If that is the case, then the 180 day rule
> under 541(a)(5) brings the property into the Estate.
>
>
>
> Regarding whether the property comes into the Estate encumbered is a
> complex issue and I would have to take a guess at the answer. My guess is
> the property is subject to fraudulent transfer actions by the decedent's
> unsecured creditors. The operative "transfer" of the asset, if I had to
> guess, is the date the decedent passed since before that date, the property
> belonged to decedent. Also, at least in California, technically any
> judgment lien against the Trustor, whether created before or after the
> transfer of the asset into the trust will automatically attach to the trust
> assets.
>
>
>
>
> Sincerely,
>
>
>
> *Michael Avanesian, Esq. *
>
> Avanesian Law Firm
>
> 801 N. Brand Blvd., Suite #1130
> Glendale, CA 91203
>
> Tel: 818.276.2477 | Fax: 818.208.4550
>
>
>
> *Confidentiality**: *This electronic transmission and its contents are
> legally privileged and confidential information and intended solely for the
> use of the addressee. If the reader of this message is not the intended
> recipient, you are hereby notified that any dissemination, distribution,
> copying or other use of this message and its contents is strictly
> prohibited. If you have received this transmission in error, please reply
> to us immediately and delete this message from your directory.
>
> *IRS Circular 230 Disclosure:* To ensure compliance with requirements
> imposed by the IRS, please be advised that any U.S. federal tax advice
> contained in this communication (including any attachments) is not intended
> or written to be used or relied upon, and cannot be used or relied upon,
> for the purpose of (i) avoiding penalties under the Internal Revenue Code,
> or (ii) promoting, marketing or recommending to another party any
> transaction or matter addressed herein.
>
>
>
> On Mon, Jun 20, 2016 at 4:12 AM, Holly Roark hollyroark22@gmail.com
> [cdcbaa] wrote:
>
>
>
> Mother is Settlor/Trustee of revocable trust. Debtor is
> Trustee/Beneficiary of Trust. Debtor manages the funds in the trust and
> pays Mother's bills from the Trust.
>
>
>
> If Debtor files Chapter 7, can trustee access the funds? The funds do not
> belong to debtor.
>
> First scenario: Assume Mother does not die during the Chapter 7 case.
>
> Second scenario: Mother owes creditors above the funds that are in the
> Trust. If she dies during Debtor's chapter 7, will the funds go to pay her
> own creditors before any distribution to Debtor as beneficiary of the Trust?
>
>
>
>
> Holly Roark
>
> Certified Bankruptcy Specialist*
>
> *and Sports Lawyer*
>
> holly@roarklawoffices.com **primary email address**
>
> www.roarklawoffices.com
>
> *Central District of California & District of Idaho* - Consumer
> Bankruptcy Attorney
>
> 1875 Century Park East, Suite 600 Los Angeles, CA 90067
>
> T (310) 553-2600; F (310) 553-2601
>
> *By State Bar of California Board of Legal Specialization
>
>
>
>
>
>
>
Thank you! I have a love/hate relationship with being wrong!
The post was migrated from Yahoo.
I have to assume your legal conclusions are true meaning the trust is
revocable and the beneficiary/Debtor has no vested interest. That's the
most important part btw. If it is not his property and he has no right to
it, then the chapter 7 trustee, stepping into his shoes will not have a
claim to it either. This does not meant the trustee won't try and your
client won't have to litigate the matter.
If mother dies, I have to assume the trust is setup to vest all the
property in the beneficiary. If that is the case, then the 180 day rule
under 541(a)(5) brings the property into the Estate.
Regarding whether the property comes into the Estate encumbered is a
complex issue and I would have to take a guess at the answer. My guess is
the property is subject to fraudulent transfer actions by the decedent's
unsecured creditors. The operative "transfer" of the asset, if I had to
guess, is the date the decedent passed since before that date, the property
belonged to decedent. Also, at least in California, technically any
judgment lien against the Trustor, whether created before or after the
transfer of the asset into the trust will automatically attach to the trust
assets.
Sincerely,
*Michael Avanesian, Esq. *
Avanesian Law Firm
801 N. Brand Blvd., Suite #1130
Glendale, CA 91203
Tel: 818.276.2477 | Fax: 818.208.4550
*Confidentiality**: *This electronic transmission and its contents are
legally privileged and confidential information and intended solely for the
use of the addressee. If the reader of this message is not the intended
recipient, you are hereby notified that any dissemination, distribution,
copying or other use of this message and its contents is strictly
prohibited. If you have received this transmission in error, please reply
to us immediately and delete this message from your directory.
*IRS Circular 230 Disclosure:* To ensure compliance with requirements
imposed by the IRS, please be advised that any U.S. federal tax advice
contained in this communication (including any attachments) is not intended
or written to be used or relied upon, and cannot be used or relied upon,
for the purpose of (i) avoiding penalties under the Internal Revenue Code,
or (ii) promoting, marketing or recommending to another party any
transaction or matter addressed herein.
On Mon, Jun 20, 2016 at 4:12 AM, Holly Roark hollyroark22@gmail.com
[cdcbaa] wrote:
>
>
> Mother is Settlor/Trustee of revocable trust. Debtor is
> Trustee/Beneficiary of Trust. Debtor manages the funds in the trust and
> pays Mother's bills from the Trust.
>
> If Debtor files Chapter 7, can trustee access the funds? The funds do not
> belong to debtor.
> First scenario: Assume Mother does not die during the Chapter 7 case.
> Second scenario: Mother owes creditors above the funds that are in the
> Trust. If she dies during Debtor's chapter 7, will the funds go to pay her
> own creditors before any distribution to Debtor as beneficiary of the Trust?
>
>
>
> Holly Roark
> Certified Bankruptcy Specialist*
> *and Sports Lawyer*
> holly@roarklawoffices.com **primary email address**
> www.roarklawoffices.com
> *Central District of California & District of Idaho* - Consumer
> Bankruptcy Attorney
> 1875 Century Park East, Suite 600 Los Angeles, CA 90067
> T (310) 553-2600; F (310) 553-2601
>
> *By State Bar of California Board of Legal Specialization
>
>
>
>
I have to assume your legal conclusions are true meaning the trust is revocable and the beneficiary/Debtor has no vested interest. That's the most important part btw. If it is not his property and he has no right to it, then the chapter 7 trustee, stepping into his shoes will not have a claim to it either. This does not meant the trustee won't try and your client won't have to litigate the matter.If mother dies, I have to assume the trust is setup to vest all the property in the beneficiary. If that is the case, then the 180 day rule under 541(a)(5) brings the property into the Estate.Regarding whether the property comes into the Estate encumbered is a complex issue and I would have to take a guess at the answer. My guess is the property is subject to fraudulent transfer actions by the decedent's unsecured creditors. The operative "transfer" of the asset, if I had to guess, is the date the decedent passed since before that date, the property belonged to decedent. Also, at least in California, technically any judgment lien against the Trustor, whether created before or after the transfer of the asset into the trust will automatically attach to the trust assets.
The post was migrated from Yahoo.