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Special Report on

The Spendthrift Clause

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Trusts have evolved as an instrument to not only give the settlor greater control over the disposition of his assets at death and to lower estate taxes, but also as a method to protect the trust income or principal from the creditors of the trust's beneficiaries. A creditor always has the right to attach income or property once it is transferred to the beneficiary and a creditor can get a court order that requires the trustee to pay the creditor instead of the beneficiary whenever a distribution is made to the beneficiary until the debt is paid. But whether the creditor can demand a distribution from the trust for ...
that is created for the benefit of a person (often because he or she is unable to control spending) that gives an independent trustee full authority to make decisions as to how the trust funds may be spent for the benefit of the beneficiary . Creditors of the beneficiary generally cannot reach the funds in the trust, and the funds are not actually under the control of the beneficiary. The creator of a trust (whether or not it is a spendthrift trust) is sometimes called the "trustor", "grantor" or "settlor" of the trust. A trust often will not be treated as a spendthrift trust unless the trust ...
Spendthrift Trusts in Bankruptcy: It's a Question of State Law
you might be wondering if you will lose your interest in the trust to your creditors. The answer to this question depends, first, on whether the trust is a “spendthrift trust” under the law of the state which governs the trust, and second, if the trust contains no valid spendthrift clause, on whether there is an exemption which can be used to protect your interest in the trust. The law states that a trust becomes property of the bankruptcy estate, unless the trust contains a spendthrift clause enforceable under state law. If so, section 541(c)(2) of the bankruptcy law excludes the trust from the bankruptcy estate, ... market research, surveys and trends
Protecting Beneficiaries with Spendthrift Clauses « Estate ...
Spendthrift clauses protect the interests of beneficiaries (except the settlor) from their creditors and prevent the beneficiaries from transferring their interests. Specifically, the trust may provide that the interest of the beneficiary in the income or in the principal or in both may not be voluntarily or involuntarily transferred before payment or delivery of the interest to the beneficiary by the trustee. [Prop C §112.035(a).] Example: If a husband and wife form a revocable trust with a spendthrift clause: During the lifetimes of both settlors, the spendthrift clause will not protect the interests of the settlors. [See Prop ... market research, surveys and trends


Coming in from the Cold–Estate Planning Using Alaska Trusts
With the recent passage of the Alaska Trust Act (Chapter No. 6, SLA 1997; effective April 2, 1997), (hereinafter sometimes referred to as the "Act"), Alaskans have positioned themselves to attract more than the occasional tourist in search of the midnight sun. The Act is intended to make Alaska the premier jurisdiction for the administration of United States situs trusts, both for creditor protection purposes and for more traditional estate plan-filing goals such as the reduction of estate and generation-skipping transfer (GST) taxes. While various factors make it unlikely that Alaska will breed the next generation of ... industry trends, business articles and survey research
QDROS DROS COAPS PERS STRS - Dividing Retirement Interests in ...
The Teachers’ Retirement Law provides that those members who have retired or are receiving any other CalSTRS benefit, the time rule formula is available while for those members who have not retired and are not receiving any other CalSTRS benefit, the segregation method is available as well as the time rule method. calpers is governed by the california goverment code and is not a qualified plan According to the plan brochure "the plan administered by CalPERS is a "governmental plan" as defined in section 414(d) of the Internal Revenue Code of 1986, and is not subject to the provisions of section 414(p) of the Internal ... industry trends, business articles and survey research
Terry Goddard, Attorney General, Phoenix, By Kent E. Cattani, Chief Counsel, Criminal Appeals/Capital Litigation Section Robert A. Walsh, Assistant Attorney General, Attorneys for Appellee. James J. Haas, Maricopa County Public Defender, Phoenix, By Spencer D. Heffel, Deputy Public Defender, Attorneys for Appellant. KESSLER, Presiding Judge. ¶1 Noel Omar Rios ("Rios") filed an Anders appeal from his convictions and sentences for murder in the second degree, aggravated assault, and discharge of a firearm at a structure. Rios filed a supplemental brief in propria persona arguing, inter alia, that the superior court ... market trends, news research and surveys resources
JOAN R. MACK, as Trustee of the Palace Jewelry & Loan Co., Inc. 401 (k) Profit Sharing Plan and Trust, Plaintiff-Appellee, v. RANDAL S. KUCKENMEISTER, CPA, MST, as Administrator of the Estate of Charla Marie Mack, Deceased, Defendant-Appellee, DARREN ROY MACK, an individual, Defendant-Appellant, and JOHN DOES, 1 through 50, inclusive, Defendant. JOAN R. MACK, as Trustee of the Palace Jewelry & Loan Co., Inc. 401 (k) Profit Sharing Plan and Trust, Plaintiff-Appellant, v. RANDAL S. KUCKENMEISTER, CPA, MST, as Administrator of the of Charla Marie Mack, Deceased; DARREN ROY MACK, an individual, Defendants-Appellees, and JOHN DOES, 1 ... market trends, news research and surveys resources


distributions were not protected by the spendthrift clause because the beneficiary had “dominion and control” over the payments. ... technology research, surveys study and trend statistics
In re Calaway (U)
The bankruptcy trustee in this case has filed a motion for turnover of assets. The debtor has objected, and the matter has been briefed to the Court. The essential facts are as follows. The debtor, Thomas Calaway, filed bankruptcy on September 14, 1999. On his schedules, he included as an asset his interest in the Catherine Paulson Grandchildren's Trust. Mr. Calaway is a beneficiary of the trust, and has valued his interest at $215,000.00. Mark Wittman, the chapter 7 trustee, filed a motion requesting that the Court order the turnover of the trust principal when the debtor ... technology research, surveys study and trend statistics
effectively crafted) both a spendthrift clause and some other compatible mechanism to better guarantee that the desired protection will in fact be achieved. ...
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A “spendthrift” clause in a trust enables creditors of a ...
False. The spendthrift clause means that the trust cannot be attached by creditors. In addition, the beneficiary cannot use the trust as an asset when applying for financing. The beneficiary also cannot assign the trust to someone else to get cash now (i.e. those J.D. Wentworth commercials). 5 months ago Asker's Rating: Asker's Comment: thanks There are currently no comments for this question. * You must be logged into Answers to add comments. Sign in or Register . Member since: January 22, 2010 Total points: 6409 (Level 5) 5 months ago
Fast Answers: Retirement & Wills, Trusts, General. - MSN Money
It depends on the size of your estate and the purpose of the trust. If your estate is under the current estate tax exemption amount ($3.5 million for 2009) and small enough to qualify for quick and inexpensive probate in your state, you may not need one. Note that the estate tax is scheduled to be repealed for 2010, although Congress may change that. However, a trust can help you avoid a court hearing if you become incompetent or unable to provide for yourself, or if you want to provide for grandchildren, minor children, or disabled relatives. With a trust, your trustee can manage assets efficiently if you should die and you ...