Saturday, December 30, 2017
Aleksi Ollikainen recently posted an Article entitled, Creditors' Claims Against Trustees and Trust Funds, Wills, Trusts, & Estates Law eJournal (2017). Provided below is an abstract of the Article:
As the trustee is the legal owner of the trust assets and the only relevant legal person, any creditor access to trust funds must be through him. But the only right of access the trustee has is through his indemnity. Therefore, creditor access is dependent on this indemnity right. If anything severs that indemnity, creditor access is lost. This creates a substantial practical problem, namely that an unconnected breach of trust can destroy creditor access. This article aims to give a relatively detailed introduction to the law of trust creditors, and suggest a solution to the problem of unconnected breach.