May the creditors of a shareholder sue the Settlement Trust to recover the shareholders debt?
The answer here should be no. The Settlement Trust usually can be sued for its own debts, not those of the shareholder-beneficiaries. 17. Are there exceptions to this? Answer: The answer here is perhaps. It is not clear whether a distribution otherwise payable to a beneficiary could be seized by a beneficiarys creditor before that distribution is actually paid to that beneficiary. ANCSA expressly protects corporate distributions from being seized by a shareholders creditor before distribution, but does not specify whether the same protection applies to pending distributions from a Settlement Trust. An open issue is whether the Child Support Enforcement Division (CSED) can reach settlement trust assets to satisfy a beneficiarys child support obligation. The position of the state of Alaska is that it is in fact able to reach the settlement trust assets through an administrative enforcement order. This issue is in the process of being litigated, so no final answer exists. With this in min
Related Questions
- A debt collection agency may sue you and if a judgement is granted against you, a collection agency may go into your bank account to collect the amount owed. Question: Can I go to jail for not paying the purported debt?
- Can one of the shareholders mentioned above, be a trust?
- How long can creditors chase debt?
