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Can an irrevocable trust file bankruptcy without impacting the beneficiaries of the trust?
An irrevocable trust can only file under a Chapter 7-11-13 if is defined as a "business trust". If that hurdle is met then to extent that the assets of the trust are utilized in the plan or dissolution, will impact the beneficiaries.
I don't know for sure but do not think the Court has any recourse to the beneficaries.
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Actually it depends... overall you should talk with a lawyer about the options.
If there is criminal activity involved, a lawsuit could be done (bankruptcy or not) that could recoup (artificially) some of the losses.
In general no, beneficaries might be out of luck if nothing was actually done wrong or illegal. Also depends on whether the trustee itself is liable or not, beyond the law.
What else can I help you with?
What is the benefit of placing term life insurance in a irrevocable trust?
The grantors of an irrevocable trust can take out life insurance on themselves and put it (term or whole life insurance) in the trust in order to pay the estate taxes on their estate assets when they die. This allows the grantor (giver of assets) to leave his estate assets to his children or someone else (beneficiaries) without them having to pay estate tax, or death tax as some call it.
Can an irrevocable trust be changed or a new one created if never funded?
Can an irrevocable trust be changed or a new one created if never funded; without beneficiary consent?
How will bankruptcy affect the sale of real estate property?
No property can be sold, transferred, refinanced, etc. while in bankruptcy without the permission of the bankruptcy court.
If you open an irrevocable Letter of credit and the supplier does not supply you with the goods that you ordered specifically can you cancel the letter of credit prior to shipment of goods?
You can't cancel the letter of credit without the permission of the beneficiary, if the L/C is irrevocable.
In regards to finance what does the term irrevocable trust refer to?
In regards to finance the term irrevocable trust refers to trust that can not be changed or ended without permission of the beneficiary. The grantor removes all of his or her rights to both assets and the trust.
Can a will be irrevocable?
Yes, a will can be irrevocable in certain contexts, particularly in relation to specific types of trusts, such as irrevocable trusts. Once established, an irrevocable trust cannot be altered or revoked by the grantor without the consent of the beneficiaries. However, standard wills are generally revocable, allowing individuals to change them at any time before death. It's important to consult legal guidance for specific situations and nuances related to estate planning.
What can you do if an irrevocable trust was left to 5 beneficiaries and one tries to sale the property without the knowledge of others?
The title to property in a trust is in the name of the trustee. Only the trustee has the authority to sell the trust property. A sale by one of the beneficiaries would be void since the beneficiaries do not have title to the property. If the property is real estate, a deed from one of the beneficiaries would not convey the property and would not be acceptable to the buyer. The deed must be executed by the trustee as set forth in the trust instrument.
How can insured amends his insurance policy without the consent of his irrevocable beneficiary?
The insured can never amend his insurance policy without the consent of his irrevocable beneficiary because this act would lessen or diminish what is due to the irrevocable beneficiary and thus considering that this is a diminution...consent of the IR beneficiary is necessary.
What is the benefit of placing term life insurance in a irrevocable trust?
The grantors of an irrevocable trust can take out life insurance on themselves and put it (term or whole life insurance) in the trust in order to pay the estate taxes on their estate assets when they die. This allows the grantor (giver of assets) to leave his estate assets to his children or someone else (beneficiaries) without them having to pay estate tax, or death tax as some call it.
Can an executor sell estate property without obtaining approval from all beneficiaries?
No, an executor cannot sell estate property without obtaining approval from all beneficiaries.
Can an irrevocable trust be changed or a new one created if never funded?
Can an irrevocable trust be changed or a new one created if never funded; without beneficiary consent?
Can the creator of an irrevocable trust contribute pretax income without paying income tax?
No.
Can the executor in Wisconsin move property without all beneficiaries approving?
The exector's responsibility to the estate, not the beneficiaries. They are accountable to the court for executing the will and the laws.
Can the executrix of an estate in the state of nc dissolve the estate without the consent of the beneficiaries?
The executrix is responsible to distribute the assets according to the will or the laws. The consent of the beneficiaries is not required.
Can the executor sell the property without all beneficiaries approval in South Africa?
The beneficiaries don't get to make the determination. As long as the court is satisfied, the executor can do so.
How will bankruptcy affect the sale of real estate property?
No property can be sold, transferred, refinanced, etc. while in bankruptcy without the permission of the bankruptcy court.
If you open an irrevocable Letter of credit and the supplier does not supply you with the goods that you ordered specifically can you cancel the letter of credit prior to shipment of goods?
You can't cancel the letter of credit without the permission of the beneficiary, if the L/C is irrevocable.
