In Re Kelleher

ORDER SUSTAINING TRUSTEE’S OBJECTION TO DEBTOR’S CLAIM OF EXEMPTIONS

GEORGE L. PROCTOR, Bankruptcy Judge.

The debtor has claimed as exempt his interest in a testamentary trust set up by the last will and testament of Ellen C. Kelleher. The parties have stipulated that the trust is a spendthrift trust.

The Trustee contends that the debtor’s interest in the spendthrift trust may not be claimed as exempt under § 522. He is correct. There is no federal, state, or local law which exempts an interest in a spendthrift trust. However, the Trustee’s victory is a hollow one.

Although the question has not…