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Liquidating Trust Form

Liquidating Trust Form

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hi i'm louisa sudbat a look for data and bankruptcy trustee so today's question is what happens if someone goes bankrupt and they're the beneficiary of a trust the answer to this question depends on what kind of trust they're the beneficiary of if it's a discretionary trust it is common that during the period of that person's bankruptcy which is typically three years that the trustee will typically choose to exercise its discretion and not distribute any amount to that beneficiary who's bankrupt now if it's something like a unit trust if the trust has any distributions during that person's bankruptcy the trustee typically doesn't have that sort of discretion and must distribute what is to be distributed in proportion to the units so in this case any amount distributed in relation to the bankruptcy units would go to their bankrupt estate one of the other things to be aware of if there's a trust invol

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