Do creditors of beneficiaries attach to trusts really?

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Latest post 03-26-2011 8:57 PM by Taxagent. 1 replies.
  • 03-26-2011 8:11 PM

    • LynnMom
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    • Joined on 02-12-2007
    • AZ
    • Posts 37

    Do creditors of beneficiaries attach to trusts really?

    I am wondering if the actual event of a creditor of a beneficiary

    persues the beneficiary to collect the debt by getting a court

    order and then attaching or getting an order to put hold on a

    TRUST prior to distribution and request they are paid first?

     

    Does this really happen or is it just their right?

    As well how do they find out your name is listed in a trust

    as a beneficiary?

  • 03-26-2011 8:57 PM In reply to

    Re: Do creditors of beneficiaries attach to trusts really?

    Judgment creditors can and do get charging orders to attach the judgment debtor's distributions from a trust. It doesn't happen with every debtor that is a trust beneficiary, of course, but it is reasonably common. There are several ways a creditor can find out about the trust. The most direct way is from a debtor's exam, in which the debtor must answer questions and bring documents that reflect his current financial state.

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