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Deferred Charitable Gift Annuity Excluded from Bankrupt’s Estate

Deferred Charitable Gift Annuity Excluded from Bankrupt’s Estate

Deferred Charitable Gift Annuity Excluded from Bankrupt’s Estate

Court says arrangement qualifies as spendthrift trust under Uniform Trust Code
An interest in a deferred charitable gift annuity is excluded from a bankrupt’s estate and cannot be recovered for the benefit of creditors, a bankruptcy court in Missouri has held. The Court said the annuity qualifies as a spendthrift trust under the Uniform Trust Code and is excluded by state law. (In Re: Spector, E.D. MO. Bkrptcy Ct., No. 10-45397-399, 10/26/10.) Donna Sue Spector worked for a family and its business for many years and expected to be “taken care of” by the family during her retirement. Her employer had transferred $505,055 to Washington University in 2004 in return for a commitment to provide Spector with monthly payments of $4,166.71 (or $50,000 annually) for life beginning in 2015 when she turned 60. The amount could not be changed and was “not assignable.” It was to be governed by Missouri law.

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