Asset protection and dynasty trusts 3
by Fox, Charles D IV, Huft, Michael J
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Lawrence subsequently declared bankruptcy. On August 26, 1999, the bankruptcy court ordered Lawrence to turn over the trust assets to satisfy in part a judgment obtained by Bear Stearns. On September 8, 1999, the bankruptcy court held Lawrence in contempt for failing to turn over the assets, and ordered him to be jailed.28 The court said that because the trust was his own creation, the debtor could not avail himself of the impossibility defense. The court also stated that why Lawrence would transfer $7 million to a trust and release all control "tortured reason and abandoned common sense." Lawrence appealed to the district court.29
The district court supported the...
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