Illinois  |  Wills and Trusts

Legal Question

Asked on: 6/21/13, 9:19 am

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?

Didn't find what you were looking for? Ask an Attorney!

Get answers from the top Attorneys
Ask Question

133 Answers given in the last few hours.

8661 Active attorneys ready to answer your question

Search Past Answers:
  Advanced Search