Apr. 8, 2017
Creditors' access to trust distributions
A recent case asked whether and when a bankruptcy estate can access a beneficiary's interest a spendthrift trust. By Mark J. Phillips and Sevag P. Kechichian
Mark J. Phillips
Shareholder
Lewitt Hackman
Email: mphillips@lewitthackman.com
Mark is a certified specialist in estate planning, trust & probate law by the State Bar of California.
Estate and trust attorneys and their litigation brethren have for decades understood that creditors have only limited rights to reach distributions payable to beneficiaries from spendthrift trusts. Spendthrift provisions in trusts for profligate beneficiaries have always been respected by statute and the courts, and Probate Code Sections 15300 and 15301 shelter income and principal, respectively, of a beneficiary's inter...
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