Chapter 7 + Trust Fund
had my first meeting with the lawyer today (pretty short, maybe 20 minutes). He asked me a bunch of questions. One questions in particular was if I had any stocks, bonds, mutual funds or investments. I said no, but I do have a trust fund, which I CANNOT access until I'm 26.. and that's years away. I can however use it for educational expenses (college tuition ONLY). Even then I have to submit a bill from my college and then the bank sends a check to the college. I never touch the money. Do I really need to list this as an asset, even though I can't use this money until I'm 26? It's a large sum of money too (about 75K now). Also, I think it is pooled into one account with the other heirs until we're 26 and then it's divided. Basically I'd like to know if this money is safe? I will be needing it to pay for college (without it, I can't pay for college.. and I'm only allowed to use it for college).
1 Answer from Attorneys
Re: Chapter 7 + Trust Fund
I am going to make this very easy and very clear. There is absolutely never an appropriate reason to leave any asset out of your bankruptcy schedules. Every single asset that you own as well as those assets you know you may have access to in the future MUST BE LISTED. In the case of the trust you mention, if you do not have the right to invade the principal then neither do your creditors. However if you fail to list the trust and then properly exempt it you can run into some big trouble.
Call your lawyer and make sure you disclose all information concerning the trust as well as any other asset you may have forgotten to mention.