Can restrictions in a trust prevent asset seizure/confiscation of a beneficiary by creditors? Does it make a difference if the creditor is the government?
Simple trust: three equal beneficiaries, all married.
One beneficiary’s spouse had personal assets commingled with business assets, and the business was fined by the government for unpaid taxes. A lien was put on their jointly-owned house, which they eventually lost in a foreclosure.
When the assets in the trust are dispersed, can the payout be temporarily withheld from the beneficiary with the fined spouse? Can the government seize his portion of the inheritance?