A bankruptcy petition results in an immediate order staying all actions against the debtor and the debtor’s property. The purpose of the stay is to allow the debtor relief from collection efforts and to permit the orderly disposition of the debtor’s estate.
Most estate planning trusts contain a provision providing that if a beneficiary contests the trust, that beneficiary is deemed to have died before the trustor. Under such circumstances, the beneficiary loses any right to receive any benefits from the trust. This type of provision is known as a “no contest” clause and will generally be… read more