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bankruptcy and inheritance/trustee Personal Bankruptcy

Discussion in 'Bankruptcy Law' started by legalq, Jul 4, 2011.

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  1. legalq

    legalq Law Topic Starter New Member

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    I am the successor trustee of a living trust that is to become irrevocable within the next month. When the trust becomes irrevocable I will become trustee over my mother and my parents “family” trust. I am unmarried and have no issue. I may predecease my mother and it has been suggested that I have a living trust set up so that should I predecease my Mother that my share of the inheritance go to “my” trust upon my mothers death and in that way I could delegate where and to whom my share would go.

    I may have to go bankrupt within the next year. (personal bankruptcy)

    The family trust has a spendthrift clause is in it. I would be listed in the family trust as a beneficiary and “my” trust listed as the next in line for my share should I predecease my mother.

    My Question:

    Will my having my own living trust that will be listed in the Family trust allow any creditor to attach the family trust. Will my ability to receive income as the trustee cause any problems with any attachment to the family trust (I will be well under the income limits of the bankruptcy guidelines)
    Will having a living trust “my “ living trust valued at under say $300 dollars (because I have to fund the living trust in order for it to be created right?) cause problems in my personal bankruptcy.
     
  2. disagreeable

    disagreeable Well-Known Member

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    Anyone attempting to defraud their creditors, should consult a lawyer locally to avoid potential fraud charges.
     
  3. Betty3

    Betty3 Super Moderator

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    Agree, your best bet is to talk to an attorney to be sure this is all set up correctly & there are no problems down the line.
     

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