QUESTION
If I file bankruptcy and I have to be a participant in the living trust, can the court put a lien on the trailer park?
Asked on Aug 17th, 2016 on Bankruptcy - Nevada
More details to this question:
My mother passed away a few months ago. She was the sole owner of a very small trailer park. In her living trust, she left the trailer park to me and my four siblings. The park does not support itself, and is in disrepair. My siblings want to fix up the park and try to make it work. My wife and I have a very small income, and I don't want to be responsible for taxes, insurance, mortgage and so on. I have no way of paying for even a small share of these expenses, and my wife and I are planning to file chapter 7 bankruptcy. How can I remove myself from the living trust? My sister who is executor states it is a very difficult process.
8 ANSWERS
Civil Litigation Attorney serving Ventura, CA
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The Law Office of Robert I. Long
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It should be possible for you to assign your interest in the trust to your siblings. See if legal aid can assist you.
Answered on Oct 06th, 2016 at 6:13 PM
Landlord & Tenant Attorney serving Thibodaux, LA
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The Louque Law Firm, L.L.C.
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Even if you remove yourself from the trust, you will have to report that action on your bankruptcy paperwork. If the trustee thinks that asset is worth pursuing, the trustee can undo everything you did like it never happened. In other words, removing your name from such an asset will not protect it from a bankruptcy trustee.
Answered on Sep 15th, 2016 at 7:04 AM
Wills and Estate Planning Attorney serving Sugar Land, TX
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Law Offices of Kimberly D. Moss, PLLC
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You need to consult with an estate planning attorney who is knowledgeable about trust law. Depending on the way the living trust was established, you may be able to disclaim your rights as a beneficiary to the trust. The proper disclaimer and appropriate real estate transfer documents would then entitle your siblings to own the trailer park without you. You're welcome to contact my office for more information on this subject or to schedule a consultation.
Answered on Sep 14th, 2016 at 11:58 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Even if you disclaim your interest in the trust, the bankruptcy court can enforce your former ownership for up to four years. The bankruptcy court would not put a lien on the property, it would seek payment for its share. However, given your description, your share might not be worth much.
Answered on Sep 14th, 2016 at 11:57 AM
Corporate/Business Attorney serving Beachwood, OH
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Christine Sabio Socrates Attorney at Law
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You should be able to disclaim your interest in the trust even without filing bankruptcy as long as you have not accepted any benefit from the property. The disclaimer must be completed within 9 months of the death of your mother and must be in writing. The effect of the disclaimer is trust property would pass to your other siblings as though you never existed.
Answered on Sep 14th, 2016 at 11:57 AM
Edwin K. Niles
You can simply transfer your interest in the park to your siblings. The lawyer handling the trust administration should be able to do this.
Answered on Sep 13th, 2016 at 5:06 PM
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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You can gift your interest in the trailer park to your siblings in equal or disproportionate shares. This can be done by recording a deed conveying the underlying realty. If the trailer park has a formal corporate or partnership existence then you need to look to the formal organizational documents to see how to transfer the ownership interest in the business entity. You may also file a disclaimer with the successor trustee that disclaims the interest passing to you under the trust. You will need to follow the proper statutory requirements and should see an attorney to assist you with the disclaimer document.
Answered on Sep 13th, 2016 at 11:26 AM
You have not disclosed the most important piece of information, which is whether the trailer park is legally owned by the trust right now or is owned by you as an individual. If you want to give away property before filing bankruptcy, you are asking for trouble. As in a criminal charge called a FRAUDULENT TRANSFER. If you are charged with this crime, I can guarantee that your life will never be the same, even if you are not convicted or the charges are dismissed. Do nothing until you obtain expert advice and expect to pay for this advice.
Answered on Sep 13th, 2016 at 11:25 AM