McCauley v. Hersloff (In Re Hersloff)

MEMORANDUM OPINION

C. TIMOTHY CORCORAN, III, Bankruptcy Judge.

In this adversary proceeding, the plaintiff Chapter 7 trustee seeks to bring into the estate the defendant debtor’s interest in a trust. The proceeding places in issue the extent to which the debtor’s powers as a co-trustee of the trust may destroy the spendthrift character of the trust. On the facts of this case, the court concludes that the defendant debtor has minimal ability to control the trust and that the trust retains its spendthrift nature. The defendant debtor’s interest in the trust is therefore excluded from the property…