If one of the beneficiaries of a Discretionary Trust is bankrupt, can the trustee postpone payment to that beneficiary until such time as the bankrupt has exited the bankruptcy process?
If the Trust document is well drafted, then the Trustees could postpone payment until the beneficiary has exited bankruptcy.
If property is put in a Discretionary Trust for a beneficiary at a time when the beneficiary is going through bankruptcy, is that property protected and can it be received by the beneficiary at a later date post-bankruptcy?
If the Trust document is well drafted, then the property would be protected until the beneficiary has exited bankruptcy.
Jim Stafford