Does a trust have an obligation to distributed funds now available if a creditor has filed a “petition to enforce a judgement”?

UPDATED: Sep 18, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 18, 2011Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Does a trust have an obligation to distributed funds now available if a creditor has filed a “petition to enforce a judgement”?

A creditor filed a “petition to enforce a old judgement” and served the trust that I am a beneficiary of. I just found out that the funds will be available to me this week. But the court date for the creditor isn’t until next month. Does the trust have a obligation to pay me as a beneficiary since the petition has not yet been granted? Or must they hold the funds because they were already served?

Asked on September 18, 2011 under Estate Planning, California


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If you are a beneficiary under a trust where there will be a distribution to you under it before the hearing date that the judgment creditor has set against you to obtain the funds that you are slated to receive in an attempt to obtain partial or full satisfaction of the judgment against you, the trustee of the trust is under no obligation to delay paying you what you are entitled to under the trust until the court makes a decision on the petition.

The only way the trustee under the trust would be forced to delay paying you the monies you are to receive under the trust is if the judgment creditor went in on an ex parte basis seeking an order from the court enjoining the trustee from making the distribution to you prior to the actual hearing date and the ex parte application was granted.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption