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.
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
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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