Retirement Monies from Trust Account
Posted: Tue Apr 09, 2013 11:15 am
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
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>
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