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Trustees, Personal Liability

Asset protection is a big reason individuals will sometimes create a trust. A lot of the focus in such situations is on making sure a beneficiary’s interest in a trust estate is outside the purview of creditors. To that end, trusts often utilize spendthrift provisions. A spendthrift provision is language in a trust that prevents […]

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Partnership Property, Creditors

One of the benefits of a limited partnership is to protect against liabilities. A partner’s individual creditors cannot attach or encumber partnership property to satisfy a partner’s individual debt. Section 358.250, RSMo; Anchor Centre Partners, Ltd. v. Mercantile Bank, N.A., 803 S.W.23, 31 (Mo. 1991). This flows from a partner’s inability to assign his or […]

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Exceptions to Trust Spendthrift Clauses

A spendthrift provision in a trust generally prohibts a creditor from trying to collect a debt  of a beneficiary  by seizing the beneficiary’s interest in a trust to satisfy the debt. These types of clauses are commonly included in trusts because the trust-creator (i.e., “settlor”) wants the trust money and assets to be used for […]

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Spendthrift Clause Enforceability in Trusts

A spendthrift clause is a provision in a trust which prohbits a beneficiary’s interest from being assigned and prevents a creditor from attaching that interest. Bruce G Robert QTIP Marital Trust v. Grasson, 332 S.W.3d 248, 256 (Mo. Ct. App. 2010). What this  means is that the beneficiary cannot voluntarily assign out the interest in the […]

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Attachment, Missouri Judgment Collection

Under Missouri procedural rules, an “attachment” is a prejudgment remedy by which property can be taken into custody to satisfy an anticipated judgment. It does not create a right to a judgment or debt. Instead, it provides a means of enforcing a judgment. In essence, an attachment is designed to allow a plaintiff take control of […]

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Fraudulent Transfers

You either have a judgment or clear evidence that someone owes you money as a creditor. What’s to prevent the debtor from transferring around assets and hiding funds from your debt/judgment? Under the Missouri Uniform Fraudulent Transfer Act (“MUFTA”), transfers of assets may in certain circumstances be set aside to satisfy a judgment.  “To set […]

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Post-Judgment Interest

Prejudgment interest is more complicated than post-judgment interest. Under the post-judgment interest statute, the statutory interest rate — 9% — begins tolling when there is money due under a judgment or order. Specifically, section 408.040, RSMo, states that: “interest shall be allowed on all money due upon any judgment or order of any court from […]

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Holder in Due Course: Promissory Note Enforcement

Debt instruments are frequently bought and sold. If A borrow money from B and signs a promissory note promising B to pay the money back in the future, it is not uncommon for B to sell his/her rights under the promissory note (usually to make a quick profit). In many cases, a litany of transfers […]

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