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spendthrift provision in trust and bankruptcy crossover
It is quite common for beneficiaries to believe they have an interest in
their parents trust; they usually do not.
IF the trust is a simple revocable trust naming the debtor as a beneficiary
with 33% interest, the beneficiary has no present interest. At least until
the trust become irrevocable following the death of the trustor.
So the follow-up question to ask is "Is the trust revocable" if revocable
there is no interest. If irrevocable, then you need to read the spendthrift
clause and also determine who is trustee of the trust. This can be a
treacherous area of the law.
Best regards
Larry Webb
State Bar of California 229344
Central District California
"A Debt Relief Agency"
Check out my Blog
Larry@webbklaw. com
Law Offices of Larry Webb
484 Mobil Ste 43
Camarillo Ca 93010
P 805.987.1400
F 805.987.2866
C 805.750.2150
The post was migrated from Yahoo.
These things are more complex than they may seem on their face.
Is the interest an income interest or principle interest?
Is the trust revocable or irrevocable?
If it is not a present interest, when does the interest become payable?
What is the choice of law provision in the trust?
Is there anything in the administration of the trust that might make the
choice of law provision be overridden?
And other questions the answers to which would be found in the trust if it
was read by an experienced trusts and estates practitioner who also knows
bankruptcy.
If you have any questions or concerns, please contact me.
Pat
Patrick T. Green
Attorney at Law
Fitzgerald & Green
1010 E. Union St. Ste. 206
Pasadena, CA 91106
Tel: 626-449-8433
Fax: 626-449-0565
pat@fitzgreenlaw.com
The post was migrated from Yahoo.
I do not believe the debtor has a vested present interest. Someone else
created the trust and placed the property in the trust and the debtor's are
33% beneficiaries under the trust.
On Fri, Jan 31, 2014 at 12:53 PM, John Faucher wrote:
> Larry's question is a good one. I've got a more fundamental one: who owns
> the 33% interest, the trust or the debtor? In other words, is the debtor a
> 33% beneficiary of a spendthrift trust? Or does the debtor own 33% of the
> property, and the trust owns the other 67%?
> - John D. Faucher
>
>
> ------------------------------
> *From:* Larry Webb
> *To:* cdcbaa@yahoogroups.com
> *Sent:* Friday, January 31, 2014 12:30 PM
> *Subject:* RE: [cdcbaa] spendthrift provision in trust and bankruptcy
> crossover
>
>
> Does the debtor have a vested present interest?
>
>
>
> Best regards
>
>
> Larry Webb
> State Bar of California 229344
> Central District California
> "A Debt Relief Agency"
> Check out my Blog
>
>
> Larry@webbklaw. com
> Law Offices of Larry Webb
> 484 Mobil Ste 43
> Camarillo Ca 93010
>
> P 805.987.1400
> F 805.987.2866
> C 805.750.2150
>
>
>
> *From:* cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] *On Behalf
> Of *Yelena Gurevich
> *Sent:* Friday, January 31, 2014 12:09 PM
> *To:* cdcbaa@yahoogroups.com
> *Subject:* [cdcbaa] spendthrift provision in trust and bankruptcy
> crossover
>
>
> Scenario: debtor has a 33% interest in property that is in a trust with a
> spendthrift provision.
>
> Can a ch 7 bankruptcy trustee reach through the trust and the spendthrift
> provision to obtain the property or charge the debtor for their portion of
> the value of the property or does the spendthrift provision prevent the ch
> 7 trustee from touching this property?
>
> --
> Best Regards,
> Yelena Gurevich, Esq.
> (818) 732-9083
> attylenagurevich@gmail.com
> www.calgroup.org
>
>
>
Best Regards,
Yelena Gurevich, Esq.
(818) 732-9083
attylenagurevich@gmail.com
www.calgroup.org
I do not believe the debtor has a vested present interest. the debtor's are 33% beneficiaries under the trust.
On Fri, Jan 31, 2014 at 12:53 PM, John Faucher <j.d.faucher@sbcglobal.net> wrote:
The post was migrated from Yahoo.
Larry's question is a good one. I've got a more fundamental one: who owns the 33% interest, the trust or the debtor? In other words, is the debtor a 33% beneficiary of a spendthrift trust? Or does the debtor own 33% of the property, and the trust owns the other 67%?
- John D. Faucher
________________________________
To: cdcbaa@yahoogroups.com
Sent: Friday, January 31, 2014 12:30 PM
Subject: RE: [cdcbaa] spendthrift provision in trust and bankruptcy crossover
Does the debtor have a vested present interest?
Best regards
Larry Webb
State Bar of California 229344
Central District California
"A Debt Relief Agency"
Check out my Blog
Larry@webbklaw. com
Law Offices of Larry Webb
484 Mobil Ste 43
Camarillo Ca 93010
P 805.987.1400
F 805.987.2866
C 805.750.2150
From:cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] On Behalf Of Yelena Gurevich
Sent: Friday, January 31, 2014 12:09 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] spendthrift provision in trust and bankruptcy crossover
Scenario: debtor has a 33% interest in property that is in a trust with a spendthrift provision.
Can a ch 7 bankruptcy trustee reach through the trust and the spendthrift provision to obtain the property or charge the debtor for their portion of the value of the property or does the spendthrift provision prevent the ch 7 trustee from touching this property?
Best Regards,
Yelena Gurevich, Esq.
(818) 732-9083
attylenagurevich@gmail.com
www.calgroup.org
The post was migrated from Yahoo.
Does the debtor have a vested present interest?
Best regards
Larry Webb
State Bar of California 229344
Central District California
"A Debt Relief Agency"
Check out my Blog
Larry@webbklaw. com
Law Offices of Larry Webb
484 Mobil Ste 43
Camarillo Ca 93010
P 805.987.1400
F 805.987.2866
C 805.750.2150
The post was migrated from Yahoo.
Scenario: debtor has a 33% interest in property that is in a trust with a
spendthrift provision.
Can a ch 7 bankruptcy trustee reach through the trust and the spendthrift
provision to obtain the property or charge the debtor for their portion of
the value of the property or does the spendthrift provision prevent the ch
7 trustee from touching this property?
Best Regards,
Yelena Gurevich, Esq.
(818) 732-9083
attylenagurevich@gmail.com
www.calgroup.org
Scenario: debtor has a 33% interest in property that is in a trust with a spendthrift provision.Can a ch 7 bankruptcy trustee reach through the trust and the spendthrift provision to obtain the property or charge the debtor for their portion of the value of the property or does the spendthrift provision prevent the ch 7 trustee from touching this property?
-- Best Regards,Yelena Gurevich, Esq.
The post was migrated from Yahoo.