Tag: spendthrift trusts

4th Circuit: Levin v. Wachovia- Spendthrift Trusts and 11 U.S.C. § 541(c)(2)

Summary:

Debtor was the beneficiary of two Spendthrift Trusts.  The Spendthrift Trusts, which were governed by Pennsylvania law, protected both the income and corpus/principal of the trusts for the beneficiaries.  As such,  11 U.S.C. § 541(c)(2)  provides that “[a] restriction on the transfer of a beneficial interest of the debtor in a trust that is enforceable under applicable nonbankruptcy law is enforceable in a case under this title” and the trusts were outside the reach of the bankruptcy estate.

For a copy of the opinion, please see:

Levin v Wachovia- Spendthrift Trusts.pdf Read More

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