Legal Question in Wills and Trusts in California
Is an irrevocable trust ever considered not to be an asset of the settlor? I know it can be considered a separate legal entity, but is what the trust holds considered to be an asset of the grantor, for bk purposes, etc.
Asked on 12/22/10, 5:52 pm
2 Answers from Attorneys
Michael Stone
Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE
If the assets are really beyond the reach of the settlor, it's not an asset of the settlor for BK purposes.
Answered on 12/27/10, 5:59 pm
Mr. Stone is correct. Once the trust is truely irrevocable, it is no longer an asset of the settlor. If the settlor is the beneficiary, however, the beneficial interest may have some value and be subject to bankruptcy jurisdicition.
Answered on 12/30/10, 6:15 pm
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