Thompson-Rossbach v. Doeling, No. 15-6012 (8th Cir. 2015)
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Debtor appealed the bankruptcy court's order overruling her objection to the chapter 7 trustee's final report and denying her motion to compel the chapter 7 trustee to abandon $16,893.44 he had received from the Ruth E. Thompson Revocable Trust. The court agreed with the bankruptcy court that pursuant to paragraph 5.3.4 of the trust agreement, debtor's interest in the Trust was fully alienable by her on the petition date, and her interest in the Trust
was not excluded from the bankruptcy estate under 11 U.S.C. 541(c)(2). Accordingly, the court affirmed the bankruptcy court's order.
Court Description: Nail, Author, with Schermer and Saladino, Bankruptcy Judges] Bankruptcy Appellate Panel - spendthrift trust. Trust contained a spendthrift trust but the provisions did not apply to the distribution from mother's trust; distribution was fully alienable because debtor had attained the age of 21 at the time of the bankruptcy and the interest are not excluded from the bankruptcy estate. Bankruptcy court's order overruling objection to the final report and denial of motion to compel trustee to abandon distribution from the trust is affirmed. [ December 01, 2015
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