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Malloy v. Morrison (In re Morrison)

Malloy v. Morrison (In re Morrison)

Ruling
Trust was not a valid spendthrift trust and was property of the estate where debtor beneficiary could obtain funds on demand.
Procedural posture

Chapter 7 trustee filed this adversary proceeding against defendant debtors claiming trust funds in a certain trust ("the Trust") as property of the estate. Debtors answered, claiming that the spendthrift provisions contained in the Trust removed the trust funds from the bankruptcy estate, thus placing them outside of the trustee's grasp.

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Consumer opinion summary, case decided on November 16, 2010 , LexisNexis #0111-057