Can a trust beneficiary lose his interest in a trust if they file for bankruptcy? This issue was discussed in a trust case out of Massachusetts which was actually a federal bankruptcy case.
The case dealt with irrevocable trust issues and bankruptcy issues which many Florida trust lawyers grapple with, including:
- Can a family trust shield and protect assets legally?
- What is the effect of a power of appointment which a trust beneficiary has?
- When can a creditor of a trust beneficiary reach the trust assets?
- ….or a beneficiary’s limited share of the trust?
- Are spendthrift provisions in trust documents effective ?
- Should you consider the differences between federal bankruptcy courts versus state trust courts when litigating over trust funds?
Jay Adkisson is a great writer on wealth and finance for Forbes magazine. You should check out his commentary and article on this recent Massachusetts bankruptcy case involving a family trust.
Here is the link to Forbes writer Jay Adkisson’s article: http://www.forbes.com/sites/jayadkisson/2014/08/23/power-of-appointment-causes-bankruptcy-estate-inclusion-in-behan/
You can also follow Jay Adkisson online: http://www.forbes.com/sites/jayadkisson/