Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Monday, November 14, 2016

Article on Business Trusts in Bankruptcy

Bankruptcy trustJared W. Speier recently published an Article entitled, Clarifying the Business Trust in Bankruptcy: A Proposed Restatement Test, 43 Pepp. L. Rev. 1065 (2016). Provided below is a summary of the Article:

In order to cure the confusion that has resulted from the absence of a clear definition of the business trust in bankruptcy, a single uniform test should be enacted. This Comment proposes a restatement test that incorporates the history of the business trust as well as courts' various approaches into a single uniform test. This test will reduce debtors' uncertainty by creating a consistent approach to determine when a trust is a business trust.

Part II of this Comment will address the history of the business trust from its roots in feudal England to its use as a tool to circumvent strict corporate statutes. Part III will outline the current state of the law regarding business trusts, both within and outside the bankruptcy context. Part IV proposes a four-factor test to remedy the courts' current confusion regarding business trusts.


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