Can money due to a beneficiary be paid to them before a court date in which a creditorwill tryto enforce a petition to enforce an old judgment?

UPDATED: Sep 13, 2011

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Can money due to a beneficiary be paid to them before a court date in which a creditorwill tryto enforce a petition to enforce an old judgment?

I have money coming as a beneficiary from a trust that stems from the sale of a condo that will close escrow next week. I also have a over zealous creditor that has filed a petition with the courts to enforce an old judgment and has served the trust and myself the paperwork asking the trust to pay him before me. But the court date isn’t until next month and the money will be available to me sooner. Does the trust have an obligation to pay me when the funds become available since the court has not yet granted the petition?

Asked on September 13, 2011 under Estate Planning, California


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Does the creditor have a judgement against you?   Is that what you mean? You need to read the motion papers served upon you by the creditor.  Do the papers have a paragraph that restrains the trustee from distributing the funds?  Honestly, even if it does not, the service of the motion on the trustee may be enough to prevent the distribution of the funds to you directly.  The trustee has been given notice that there is a judgement owed.  If there is not a judgement already then I can not see how the creditor can stop the distribution until the dispute regarding the fund is determined.   I would seek  some legal advice here from someone who can read the papers. ANd I would make a deal with the creditor.  Good luck. 

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