What happens if a beneficiary of a trust files bankruptcy? How? 9 Answers as of June 23, 2015

Do I need to list my aunts trust account if I am one of the beneficiaries? However, due to her age and illness I am listed on two of her accounts as a user to handle and process her expenses.

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Ronald K. Nims LLC | Ronald K. Nims
You need to list the trust account because you're a beneficiary. If the trust was well written, court won't be able to attach your interest in the trust. You need to list that you have signature authority on your aunt's bank accounts but they're not your money, so the court can't attach those funds.
Answer Applies to: Ohio
Replied: 6/23/2015
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
If your aunt passes within 6 months of filing you have to notify the trustee. Your share becomes an asset in your case, your interest must be disclosed in your bankruptcy paper work. The checking accounts present another problem. It used to be that Wells Fargo would put an administrative hold on any account you are listed on if the balance was over 5k. Recently I have seen other banks do it. You can get the hold released but it takes 1 to 2 weeks. When ever there are complications I suggest you get a lawyer. You may find one at NACBA.org.
Answer Applies to: California
Replied: 6/23/2015
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Everything must be listed. Meet with an experienced bankruptcy lawyer face to face. Any attorney worth his or her salt will charge you for the consultation. You do not want to skimp here. Lawyers who advertise "free" office visits normally meet for only a few minutes. You want an attorney's undivided attention for an hour.
Answer Applies to: Colorado
Replied: 6/22/2015
Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
You really need to consult with a lawyer who can review your trust documents and bank accounts to advise you whether you will have difficulty in bankruptcy. This is not the correct forum for such specific legal information since the answers will be very fact specific. With what is at stake, any legal fees you pay will be well worth it!
Answer Applies to: Colorado
Replied: 6/22/2015
Garner Law Office
Garner Law Office | Daniel Garner
You must disclose your role in the trust and declare the bank accounts with your name on them. You will probably have to provide the bankruptcy trustee a copy of the trust and copies of bank statements from your aunt's bank accounts that have your name on them. You will have to demonstrate that you do not use any of the money in the bank accounts for your own personal use. Whatever money you are entitled to in the trust can be claimed by the bankruptcy trustee, unless you can use some available exemption which would depend on a lot of more specific details in your case.
Answer Applies to: Oregon
Replied: 6/22/2015
    Stephens Gourley & Bywater | David A. Stephens
    You would list them as a contingent beneficiary with not current interest, unless the accounts are title such that you have a current interest. If you have a current interest the account could be taken by the bankruptcy trustee.
    Answer Applies to: Nevada
    Replied: 6/22/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    First things first: you should retain an experienced bankruptcy lawyer for just about any case, unless your affairs are the simplest. Yours are not. You must disclose all assets and all claims on the bankruptcy papers including your beneficial interest in the trust. If the bank accounts are joint, the way to proceed is not so clear: some federal districts recognize that the accounts are an estate planning device for an older relative, and do not treat them as your own property. However, a joint account belongs to each and every holder, so it appears to be your property. And a bankruptcy trustee or judge could very well consider the accounts assets of the estate (unless they are small enough to be exempt). Your lawyer should be able to tell you how judges in your district tend to rule on this kind of account.
    Answer Applies to: Wisconsin
    Replied: 6/22/2015
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Depends on whether the trust has an anti-alienation clause and how long she lives and the bank account contracts say there is usually no simple user account.
    Answer Applies to: Michigan
    Replied: 6/22/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Sometimes an attorney really need to look at the documents to answer a question. In some instances, the property in the trust will be fully protected if you file bankruptcy, but I would not be willing to take this risk without seeing the documents.
    Answer Applies to: Nevada
    Replied: 6/22/2015
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