Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.
Generally, the courts will look to when they were transferred in relation to the bankruptcy filing, and also if they were revokable or not
if they were revokable trusts, then the asset can be liquidated
if they are irrevokable, then they may not be touched.
Is this regarding the mom & son again?
no, just a general question
Are revokable trusts simply an alter ego of the homeowners? And therefore do the exemptions apply for homestead?
yes, basically. since they can be revoked, the trustee can access them, since the debtor could revoke too
They would get the exemption if they filed.
if irrevokable, then they might lose the exemption, but the asset isn't theirs anymore, it is owned by the trust for the benefit of the beneficiaries
an irrevocable trust is really a permanent transfer of title then, but I would assume it would have to be at least a year old to hold up
correct, usually 2 years for bankruptcy though
so let's suppose I am the beneficiary of an irrevocable trust and I file bankruptcy. do I get a homestead exemption for my beneficial interest in the irrevocable trust?
if you live there, you might qualify for the exemption
let's assume I live there yes
your local attorney can review the facts to see if you would
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