On occasion I have potential clients who have set up trusts, and want to know if the assets in the trust will be in jeopardy in a Chapter 7 bankruptcy.  My answer has always been:  “It depends.”  And after recently attending a first rate continuing legal education presentation by two erudite colleagues, Mark Jessee and Pat Green, I was happy to see that they echoed my position.

Well, that answer is not very satisfying, is it?  How about a little more detail?

Mark and Pat produced some excellent notes from which I will crib just a bit, using the scholarly exception to copyright infringement, to give you a taste of what is involved.

However:  Caveat Emptor!  This topic is very complicated, and this post just scratches the surface.  If you have a trust, or are planning to set one up, you should consult a competent attorney to discuss the implications — especially if you think bankruptcy is looming on the horizon.
Continue Reading Dangers Associated with Trusts in a Chapter 7 Bankruptcy