Say a parent has two children and sets up two irrevocable trusts, one for each, and is the trustee of both. The younger child received life insurance from the other parent, as a minor. The parent puts the life insurance funds in a trust account for the younger child. The younger child grows up to be be without capacity/incompetent. Later, the parent disburses what is due to the older child from the older child's trust. The life insurance funds are left on the younger child's trust account. Later, the parent as trustee improperly drains the account of funds for the younger child.
Can the state go after the older child's disbursed inheritance for what was stolen by the parent from the younger child? If it is now in a new irrevocable trust for the older child's child? If it is wrapped up in equity in a house?
Can the state go after the older child's disbursed inheritance for what was stolen by the parent from the younger child? If it is now in a new irrevocable trust for the older child's child? If it is wrapped up in equity in a house?