Section 1.44 Bankruptcy of a Beneficiary

• Library: Trusts and Powers 2013 Supp

2. (§1.44) Bankruptcy of a Beneficiary

If the beneficiary is or becomes bankrupt, a restriction on the transfer of the beneficiary’s beneficial interest in the trust that is enforceable under § 456.5-505, RSMo Supp. 2005, should be enforceable against the trustee in bankruptcy of the beneficiary. In re Jones, 43 B.R. 1002 (N.D. Ind. 1984); see 11 U.S.C. § 541(c)(2). In In re Rolfe, 34 B.R. 159 (Bankr. N.D. Ill. 1983), the court held that the trustee in bankruptcy was entitled to take the debtor’s interest...