Central District Consumer Bankruptcy Attorney's Association

If the Trust is irrevocable the house will be protected. If the Trust is revocable (as most are when the settlor is still alive) the PC has to much control and the equity in the house will not be safe. The spendthrift clause works when the trust has become irrevocable.
Law Office of Catherine Christiansen
1077 E Pacific Coast Hwy #210
Seal Beach, CA, 90740
Tel: (562) 361-8721
Fax: (562) 490-8572
attorneychristiansen@gmail.com
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Regardless whether trust is revocable or not, it is a self-settled trust and
not protected from bk
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Steven B. Lever
Sent: Monday, December 28, 2009 12:37 PM
To: cdcbaa@yahoogroups.com
Subject: RE: [cdcbaa] Debtor as settlor and beneficiary of trust
If it is a revocable trust, like it normally is, it is inside the estate and
would be exempted as if outside the trust. If there is equity above that,
dont file the case.

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yes, house is at risk in self settled trust.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
vlelaw
Sent: Monday, December 28, 2009 12:36 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Debtor as settlor and beneficiary of trust
Potential client wants to file BK. PC creates self funded trust placing
house in trust several years ago. Trust has spendthrift clause. There is
substantial, unprotectable equity in the house. PC is trustee of the trust.
I have not found case or statute dealing with whether the house owned by the
trust is at risk in BK. Is it?
Vernon L. Ellicott, Esq.
Certified Family Law Specialist
California State Bar Board of Legal Specialization
A Bankruptcy and Family Law Firm
Law Offices of Vernon L. Ellicott
100 E. Thousand Oaks Blvd., Suite 147
Thousand Oaks, CA 91360
(805) 446-6262 phone
(661) 222-2922 phone
(805) 446-6264 fax
charset="windows-1251"
Message
yes, house is at risk in
self settled trust.


David A.
Tilem
Certified Bankruptcy
Specialist*
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The reference is Prob C 15304. Settlor Beneficiary
Larry Webb
email Larry@Webbklaw.com
Law Office of Larry Webb
484 Mobil Ave. Suite 43
Camarillo California 93010
805 987 1400
Fax 805 987 2866
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In California, as to the settlor, a spendthrift clause has no effect under a
self settled trusts. The trust is revocable and the house is at risk.
Larry Webb
email Larry@Webbklaw.com
Law Office of Larry Webb
484 Mobil Ave. Suite 43
Camarillo California 93010
805 987 1400
Fax 805 987 2866
WARNING And Tax disclaimer
This E-mail is covered by the Electronic Communications Privacy Act, 18
U.S.C. 2510-2521 and is legally privileged. This information is
confidential information and is intended only for the use of the individual
or entity named above. If the reader of this message is not the intended
recipient, you are hereby notified that any dissemination, distribution or
copying of this communication is strictly prohibited. It is for the use of
the named addressees and may not be disclosed to anyone else without the
express consent of the originator. If you have received it in error you must
not use, disclose,copy, or rely on its contents and should destroy it
immediately. If you need any further information, please contact the
originator of this message.
IRS Circular 230 Disclaimer: To ensure compliance with IRS Circular 230, any
U.S. federal tax advice provided in this communication is not intended or
written to be used, and it cannot be used by the recipient or any other
taxpayer (i) for the purpose of avoiding tax penalties that may be imposed
on the recipient or any other taxpayer, or (ii) in promoting, marketing or
recommending to another party a partnership or other entity, investment
plan, arrangement or other transaction addressed herein.

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Amendment: Don't file it as a Chapter 7. There may be a reason to file
as a reorganization, but I don't have sufficient facts to assess that.

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If it is a revocable trust, like it normally is, it is inside the estate
and would be exempted as if outside the trust. If there is equity above
that, don't file the case.

The post was migrated from Yahoo.

Potential client wants to file BK. PC creates self funded trust placing house in trust several years ago. Trust has spendthrift clause. There is substantial, unprotectable equity in the house. PC is trustee of the trust. I have not found case or statute dealing with whether the house owned by the trust is at risk in BK. Is it?
Vernon L. Ellicott, Esq.
Certified Family Law Specialist
California State Bar Board of Legal Specialization
A Bankruptcy and Family Law Firm
Law Offices of Vernon L. Ellicott
100 E. Thousand Oaks Blvd., Suite 147
Thousand Oaks, CA 91360
(805) 446-6262 phone
(661) 222-2922 phone
(805) 446-6264 fax

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