Asset Protection

Question 1

Asset Protection: Basic Rule:

Answer 1

Creditors may step into the shoes of the beneficiary if the win a court judgement.

Question 2

Asset Protection: What can creditors get from a trust?

Answer 2

Just what the beneficiary was entitled to.

Question 3

Asset Protection: Mandatory Trust Present:

Answer 3

Payments of income to beneficiary are mandatory, so creditor can bring a garnishment action and step into the shoes of the beneficiary and receive those payments.

Question 4

Asset Protection: Mandatory Support Trust:

Answer 4

Creditor may compel payment if the bill is related to the specific support of the trust which is meant for the beneficiary.

Question 5

Asset Protection: Discretionary Trust:

Answer 5

Creditor can not force a payout, but they can still garnish from the beneficiary. The beneficiary will not get paid, the creditor will get paid when the trustee uses discretion to pay out.

Question 6

What is the order called when the court orders a payout to a creditor.

Answer 6

Hamilton Order