Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney. Thanks for your question.
Since you are not the settlor (owner) of the trust, and AS LONG AS the settlor lives through your bankruptcy, your beneficiary interest is contingent, meaning it doesn't come into your bankruptcy as property of the estate. This is so because your interest is contingent on the settlor, who can remove you as a beneficiary at any time.
In other words, this would not be an asset of your bankruptcy estate because you're not ENTITLED to the money and your dad (settlor) could remove you anytime. However, if he were to die, the revocable trust becomes irrevocable and you would then have a vested interest in the trust property - - which would become an asset of the estate.
Thus, it is not necessary for you to be removed as beneficiary to keep the trust from being included as an asset in the bankruptcy - - as long as your father doesn't die during the bankruptcy.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).