Charles E. Rounds, Jr. (Suffolk University Law School): Is the Property of a Trust Accessible to the Settlor’s Future Creditors? (February 19, 2023)

Charles E. Rounds, Jr., of Suffolk University Law School, has made available for download his article “Is the Property of a Trust Accessible to the Settlor’s Future Creditors?,” published in JDSUPRA. The abstract is as follows:

Assume an owner of property gratuitously transfers it in trust to an independent trustee, expressly reserving to himself no powers, whether fiduciary or non-fiduciary. Also assume this is not to be a statutory domestic asset protection trust (DAPT). At time of transfer the settlor is not only solvent but also creditor-free. Sometime post transfer settlor incurs debt that renders him insolvent. May his post-transfer (“future”) creditors reach the entrusted property? Had settlor reserved even a contingent interest in the principal, most likely. If not, possibly.

Click here to view Charles E. Rounds, Jr.’s summary of “Is the Property of a Trust Accessible to the Settlor’s Future Creditors?”

Posted by Nicholas Ward, Associate Editor, Wealth Strategies Journal