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Retirement Monies from Trust Account
1. It depends on language of the trust. Are the payments mandatory or discretionary? Is there a spendthrift provision/Anti alienation clause?
Distributions during Chapter 7 are likely assets of the bankruptcy estate.
Mark Jessee
Sent from my iPhone
On Apr 9, 2013, at 10:38 AM, "riprapbiz" wrote:
> Is there any reason in the BK Code why a Trustee would stop payments to a beneficiary? Wife receives $2000.00 from Trust set up to distribute funds to wife (deceased husband set it up). Wife is NOT a Trustee. Beneficiary until she dies at $2,000.00 / month. When she passes, the remainder of Trust is distributed to other beneficiaries. I see nothing in the Trust to state that payments would stop and I see nothing in 362. Am I being paranoid? Thanks!
>
> Oh, and this is 73 year old, Chapter 7. She got HELOC to help children start a business that failed in 2009. Incurred debts for the business and cannot keep up with payments.
>
> Sandy
> Sandra Maria Nutt, Attorney at Law
> 5910 Van Nuys Boulevard
> Van Nuys, California 91401
> Tel: (818) 988-8878
> Fax: (818) 988-8339
> SandraNutt1234@gmail.com
> Web site: SandraNuttAttorneyAtLaw.com
> ALU Alumni http://www.AllThingsALU.com
>
>
The post was migrated from Yahoo.
Is there any reason in the BK Code why a Trustee would stop payments to a beneficiary? Wife receives $2000.00 from Trust set up to distribute funds to wife (deceased husband set it up). Wife is NOT a Trustee. Beneficiary until she dies at $2,000.00 / month. When she passes, the remainder of Trust is distributed to other beneficiaries. I see nothing in the Trust to state that payments would stop and I see nothing in 362. Am I being paranoid? Thanks!
Oh, and this is 73 year old, Chapter 7. She got HELOC to help children start a business that failed in 2009. Incurred debts for the business and cannot keep up with payments.
Sandy
Sandra Maria Nutt, Attorney at Law
5910 Van Nuys Boulevard
Van Nuys, California 91401
Tel: (818) 988-8878
Fax: (818) 988-8339
SandraNutt1234@gmail.com
Web site: SandraNuttAttorneyAtLaw.com
ALU Alumni http://www.AllThingsALU.com
The post was migrated from Yahoo.