I am 1/3 beneficiary to my mothers trust since 2002. The trust includes a home and some liquid assets in the body of the trust and a separate Inherited IRA both are owned by a trust company. The trust is a spendthrift trust and instructs that beneficiaries are to receive $500 a month. Also all beneficiaries are permitted to live in the home until they are ready to move out at which time the house will be sold and proceeds go into the main body of the trust to be dispersed as stated above.
Under what schedule should the trust and IRA be listed? Should the house be listed in schedule A even tho I do not own it and it is considered an asset contained in the trust? My hunch is perhaps Schedule B number 19 or 20?
Or perhaps I only list the trust and IRA only in Schedule C exempt assets?
Under exemption 11 U.S.C. 541(c)(2). Federal Nonbankruptcy Exemption.
Then again I came across this on an informational website:
The most favorable scenario is one in which your interest in a trust is subject to valid spendthrift clause, and therefore the trust does not even need to be claimed exempt, because it is excluded from the bankruptcy estate.
If this is true I dont list it at all in any Schedule? or include the information about the trust and a copy of it for the Trustee?
Under what schedule should the trust and IRA be listed? Should the house be listed in schedule A even tho I do not own it and it is considered an asset contained in the trust? My hunch is perhaps Schedule B number 19 or 20?
Or perhaps I only list the trust and IRA only in Schedule C exempt assets?
Under exemption 11 U.S.C. 541(c)(2). Federal Nonbankruptcy Exemption.
Then again I came across this on an informational website:
The most favorable scenario is one in which your interest in a trust is subject to valid spendthrift clause, and therefore the trust does not even need to be claimed exempt, because it is excluded from the bankruptcy estate.
If this is true I dont list it at all in any Schedule? or include the information about the trust and a copy of it for the Trustee?