(7th Cir. July 18, 2017)
The Seventh Circuit affirms the bankruptcy court’s order sustaining the trustee’s objection to the debtors’ $30,000 exemption in trust assets. The debtors argued the spendthrift provisions in the trust prevented the interest from becoming property of the estate. The court holds that the trust interest fully vested before the debtors filed bankruptcy. An exemption was inappropriate and the interest was property of the estate. Opinion below.
Attorney for Debtors: Julia D. Mannix
Attorney for Trustee: Zane Zielinski
Author: Matt Lindblom