My Aunt before she died had a Family Trust set up by her attorney for the benefit of her special needs son. Her, now 40 year old son, is mentally incompetent and current resides in a facility. I am a Trustee for the checking account. If I file for bankruptcy - How do I protect that account and how will it affect my bankruptcy petition, as it is not MY asset?
State/Country relating to question: California
You said you are "a trustee" of this account. How many other trustees are there? Do you have any absolute control over this account, or is the approval of the other trustees required before you can do anything with the account - such as disbursing money to the son?
No other Trustee. Absolute control. Only person having access to funds.
Then the trust would be listed on line 14 of the Statement of Financial Affairs ("Property held for another person"), since you have control of the account. However, the account would not be listed anywhere else in your Bankruptcy paperwork, and the account would not become part of the Bankruptcy estate. In other words, the account cannot be taken by the Bankruptcy court. There is nothing that you need to do to protect this account, as it does not belong to you.
I think this is what you wanted to know. If not, please let me know.
I have to ask my husband if this is all he wanted to find out on the topic of my Aunt's trust checking account.
My husband has cancer and the medical from Feburary to now are piling up. He can't work and we are deliquent on our mortage. BK was suggested. Same person suggested paying those past due medical bills with credit card 100 days before filing. My question why would that be advised and was that bad advise?
That was bad advice, because using your credit cards with no intention of paying the credit cards can be deemed "fraudulent" - no matter how far in advance of filing a Bankruptcy the credit cards are used.If deemed "fraudulent", the Credit Card Debt would be non-dischargeable.
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