Legal Question in Wills and Trusts in New York

Lean on Assets of a Trust

I have a relative, to whom I loaned money. This relative is the beneficiary of a trust,in NY, which matures in 2 years. The trust contains securities and other investments which gain INTEREST. The relative is entitled to withdraw only INTEREST from the trust and I do not want to disturb this. However, I would like to put a lien on the non-INTEREST bearing assest to guarantee my payment at expiration of the trust. How do I do this. I have documentation to support the debts to me of the relative.


Asked on 7/19/01, 9:25 pm

2 Answers from Attorneys

Re: Lean on Assets of a Trust

First, you would need judgment against the

relative. Then you would need an attorney

to issue a property execution and deliver

to the Trustee. Third, you would also

need to have hope that there is no

prohibition in the Trust making it a spend

thrift trust, and thus, not distributable

to the beneficiary. An attorney would need

to review the Trust Document/Will

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Answered on 7/21/01, 9:38 am
Norman Nadel Norman Nadel, Esq.

Re: Lean on Assets of a Trust

The relative can notify the trustee in writing that upon termination of the trust you will be paid your loan (the amount should be specified) before any amount is distributed to your relative.

If the relative is unwilling to do this you have a problem. You would have to get a judgment against him and then serve the judgment on the trustee. The trust may be spendthrift trust and your judgment would not give you a priority.

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Answered on 7/20/01, 3:29 pm


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